Families whose loved ones were murdered in a 1972 bombing, in which a Catholic priest is said to have played a role, have accepted a financial settlement from the police and the Northern Ireland Office.
Nine people were killed and more than 30 injured when three bombs exploded in the Co Derry village of Claudy almost 50 years ago.
No organisation claimed the atrocity, but it was widely believed to have been the work of the IRA.
The case centred on the families' belief that the original investigation was botched and there was a cover-up to protect a Catholic priest suspected of involvement.
Several of the families took a civil action against the Northern Ireland Office (NIO), the Chief Constable and the Catholic Church.
The case against the police and state has now been settled after mediation. An action against the church is continuing.
There was no admission of liability, but the NIO and police agreed to a financial payout and costs.
The size of the settlement has not been disclosed.
A 2010 police ombudsman's investigation found that detectives had intelligence and information pointing to the role of a Fr James Chesney, who died in 1980, but a decision had been taken not to pursue those lines of inquiry.
Instead, it was left to senior figures in the NIO and Catholic Church to deal with the situation.
Papers showed that the then Secretary of State William Whitelaw and the then Cardinal Conway discussed Fr Chesney's alleged IRA activities.
There were discussions about transferring him to Co Donegal, where he was later was sent and was never reassigned to Northern Ireland.
Church records indicated that when questioned by superiors he denied involvement, but those denials were never tested by police.
Three of the families were involved in the legal action.
David Temple took a case on behalf of his 16-year-old brother William Watson Temple who was killed in the blasts.
James Miller acted on behalf of his 60-year-old murdered grandfather David Miller.
Colin McClelland and Tracy Deans took the case on behalf of their uncle Thomas McClelland, 64, who was also killed.
All three families said they had been angered by the approach to the case taken by the Catholic Church.
Solicitor Kevin Winters, who represented three of the families, told RTÉ's News at One that the families have been on a long journey seeking justice.
"They have been for many, many years, trying to get some form of investigation into what happened 30 years on from the atrocity," he said.
Mr Winters said that the families felt compelled to go down the legal route, which has led to today's settlement.
He said that families in theses situations will never have total closure, but this "gives partial closure because, significantly, they felt empowered because they were able to access key information in through discovery applications, which they would never have received had they not embark upon".
