The 129 detainees' legal claim alleged they were stripsearched, subjected to isolation and beatings as punishment and encouraged to attack each other by staff at Tasmania's Ashley Youth Detention Centre, near Launceston, between 1960 and 2023.
Justice Stephen Estcourt confirmed the settlement on Monday in the state's Supreme Court.
A plaintiff said the most difficult part of the class action was revisiting his trauma in detention. (Ethan James/AAP PHOTOS)
Tasmania remained "deeply committed" to better protecting children and young people and ensuring their access to justice, Attorney General Guy Barnett said.
"The government was pro-active in progressing the settlement and co-operated with counsel for the plaintiffs so that this complex matter could be resolved during mediation in a respectful and trauma-informed way," Mr Barnett said.
"We have heard the stories, and we acknowledge the lasting and negative impact that abuse has on the lives of children, young people and their families."
But lawyer Angela Sdrinis, whose firm filed proceedings, said the result followed years of "ignoring reviews and recommendations" by the government.
"Today, the state is paying the price for these failings," Ms Sdrinis said.
"While nothing can take away the trauma of child abuse and the deep sense of betrayal these men and women experienced when they were children detained in the AYDC, it is another step in the process of healing."
The state government will ensure abuse victims have access to justice, Guy Barnett says. (Ethan James/AAP PHOTOS)
Plaintiff Ricky Brown said the most difficult part of the class action was revisiting years-old trauma from his time in detention.
"All I can say is out of all the sadness and the suffering, we are finally being recognised today," he said.
"No one listens to crime kids. It took 40 years, but I have gained strength through this."
The settlement includes an allocation for the provision of financial counselling, financial advice and trauma counselling for all members of the class.
Premier Jeremy Rockliff will have to issue a letter of apology to each settlement member.
A state inquiry into child sexual abuse in government institutions deemed the Ashley Youth Detention Centre a "live" risk to children in its final report, which was released in September 2023.
Premier Jeremy Rockliff will write a letter of apology to each person getting a settlement. (Ethan James/AAP PHOTOS)
It called for the centre be closed as soon as possible - listing it among recommendations to be completed by July 2026.
Tasmanian Greens leader Rosalie Woodruff welcomed the settlement's approval and said successive governments had failed in their duty to protect children at Ashley.
"Unlike other similar cases of institutional abuse, this result isn't just about the past - it's about the present too," Ms Woodruff said.
The party called on the government to close the centre.
"There is still a live and current risk of abuse occurring at Ashley, with frequent violations of the human rights of children at the centre."
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