The agreement, which is awaiting approval, is to compensate nearly 7,000 people who were subjected to abuse when they lived in children's homes and youth institutions during the 1980s, 1990s, and 2000s.
After a new state law came into force in 2020, thousands of adults began to come forward with stories of systematic sexual abuse in youth institutions.
The new law made it possible for people who were subjected to sexual abuse as children to take legal action, long after the statute of limitations had expired.
Many more also claim to have been subjected to abuse in a foster home. Their legal representatives have called the home a "house of horrors" and an investigation revealed that no background checks had been performed on the staff.
The sum – equivalent to around 40 billion Swedish kronor – being paid out exceeds previous similar agreements. It includes 2.46 billion dollars that the Boy Scouts of America organization paid out to young people who were subjected to abuse within the organization.