The Government has paid more than $500,000 compensation to Tyson Gregory Redman, who was wrongfully convicted of a gang-related group assault when he was aged 17.
Redman, who is now about 30, spent two and a half years in prison.
His conviction was later quashed when eight people came forward saying he was not present at the Mt Roskill attack, which involved members of JDK (variously known as the Junior Dom Kings or Junior Don Kings).
The payment, announced by Justice Minister Andrew Little, is the first compensation payment for a miscarriage of justice which has included an inflation adjustment at the outset.
In December 2013, the Court of Appeal quashed these convictions without ordering a retrial and Redman applied for compensation in July 2014.
In July 2015 the then Justice Minister, Amy Adams, asked Donald Stevens QC to provide independent advice on the application.
His first report in early 2017 concluded that, on the balance of probabilities, Redman was innocent of the wounding and injuring charges.
Stevens completed a second report assessing an appropriate amount of compensation.
Little said the Government accepted Stevens' advice and offered Redman an ex gratia payment of $551,017.16, representing $475,722.75 for non-pecuniary losses adjusted for inflation, and $75,294.41 for pecuniary losses (including his finalised legal costs).
Last year the previous Government paid compensation to Teina Pora, who spent 20 years in prison after being wrongfully convicted of rape.
But the new Government adjusted it for inflation, lifting Pora's total compensation from $2.52 million to $3.51 million.
Little said the Government has also adopted Stevens' recommendation to provide financial support should Tyson Redman wish to receive professional counselling and therapy to help him deal with the mental and emotional impact of his experience.
Reimbursement of these costs would be for a two-year period and up to $21,700.
Little said the Crown accepted Redman's innocence and "apologised unreservedly" for his wrongful convictions and imprisonment.
"I recognise the Crown's offer of compensation will never completely correct the wrong that Mr Redman has suffered, but I hope it will help him and his family recover from the distressing experience they have been through."
He said Redman had agreed to accept the Government's offer of compensation.