An Ontario judge has decided the ’60s Scoop class-action lawsuit in favour of the plaintiffs.
The court will now determine how much the federal government must pay in damages.
The plaintiffs had sued for $1.3 billion.
Starting in the 1960s, child-welfare authorities placed thousands of on-reserve aboriginal children in non-aboriginal homes.
They blamed the loss of their cultural identity on federal government negligence.
The judge said the federal government owed it to the children to help protect their indigenous identities.
In Ottawa, Indigenous Affairs Minister Carolyn Bennett said the government would “absolutely not” appeal the ruling.