The settlement, made on Tuesday, came more than six years after the plaintiff initially filed her suit and follows a landmark Supreme Court ruling on July 3 that declared the plaintiffs eligible for compensation and deemed the eugenics law unconstitutional for the first time.
The eugenics protection law, in effect from 1948 to 1996, allowed for the sterilization of individuals with intellectual disabilities, mental illnesses, or hereditary disorders without their consent to prevent the birth of "inferior" offspring.
Government data shows that about 25,000 people underwent sterilization under the law, with 16,000 of the procedures performed without consent.
The Supreme Court's decision overturned the 20-year statute of limitations for unlawful acts in cases related to the eugenics law, opening the door for similar settlements in other ongoing lawsuits across Japan.
In a related development, three other plaintiffs reached settlements of 15 million yen over forced sterilization each at the Sendai District Court on the same day.