This article considers the distributed adaptive fault-tolerant control problem for heterogeneous linear multiagent systems with actuator faults and nonuniform time-varying communication delays. First, novel distributed switching observers are proposed to estimate the system matrix and the state of the exosystem. The observers allow each agent to share its information with its underlying neighbors only at sampled instants of time, thus making a distinct difference from the existing results that require the exosystem matrix to be accessible to all agents at every continuous instant of time. Second, a sufficient condition is derived such that the observer error systems are exponentially stable under the influence of communication delays among interacting agents. Third, new distributed adaptive fault-tolerant controllers, which promise fewer adaptive parameters, are presented to compensate for the actuator faults. It is shown that the developed controllers are capable to effectively and efficiently solve the cooperative fault-tolerant output regulation problem with reduced computational complexity. Finally, three illustrative examples, including an inverted pendulum system, an electronic double-integrator circuit system, and an AC microgrid system, are presented to show the validity and efficiency of the developed method.