Hundreds of people sexually abused by the Catholic church will receive $87.5 million (£67.04 million) from the Catholic Diocese in New Jersey.
In a first, the agreement also paves the way for lawsuits against insurance companies that protect dioceses against negligence charges.
This is one of the largest settlements involving the Catholic Church in the US, which has been accused of covering up years of misdeeds.
The diocese apologized.
Approximately 300 victims of abuse will receive the settlement funds from a trust over the next four years, the diocese said.
A child protection measure will also be included, which is still being finalized.
It must still be approved by a judge because the diocese filed for bankruptcy in 2020 amid the Covid-19 pandemic and abuse disputes.
Bishop Dennis J. Sullivan said he was pleased that the mediation process had resulted in a settlement.
Jeffrey Anderson, a lawyer who represents 74 of the victims, said the settlement was unprecedented for another reason.