CTV News has learned a settlement has been reached between the Nova Scotia government and former residents of the Nova Scotia Home for Colored Children.

Roughly 140 former residents signed up for a proposed class-action lawsuit, which originally named the province and the home in Dartmouth.

In late 2012, RCMP announced there would be no criminal charges because there wasn’t enough evidence to support the former residents’ allegations of physical, emotional and sexual abuse by orphanage staff.

However, residents continued to push for a public inquiry – something the NDP government wasn’t willing to commit to.

With a new session of the legislature in March 2013 came an NDP promise to appoint an independent panel to address the abuse allegations, instead of a public inquiry.

Then, a $5-million settlement was reached with the home in April 2013, as the NDP government continued to fight to prevent the lawsuit from going forward.

The provincial government’s reluctance to call for a public inquiry into the abuse allegations sparked anger among those involved in the class-action lawsuit.

“We former residents feel we are being re-victimized by our current government,” said Tracey Dorrington in May 2013.

The former residents found support for their calls for an inquiry with then-Liberal Leader Stephen McNeil.

On election night, after McNeil was elected the new premier of the province, he again promised he would support a full inquiry into the abuse allegations.

“I have made a commitment that I would be responding in a way to the Home for Colored Children with a full public inquiry,” said McNeil on Oct. 8, 2013.

Soon after, McNeil announced his government would move ahead with the inquiry. He later told CTV News he hoped to settle the lawsuit out of court.

Last fall, Ray Wagner, the lawyer representing the former residents in the class-action lawsuit, indicated he would be looking for an agreement that covers everyone who wants to come forward, with guidance for those who might receive compensation.

The two sides started negotiating in December and, after months of negotiations, a deal has been reached. There is no word on a dollar amount at this time.

No one would comment on the settlement Thursday. An announcement about the settlement, and possibly an inquiry, is expected early next week.

With files from CTV Atlantic's Jacqueline Foster