Historic child sexual abuse is alleged to have occurred at the former Worimi Shelter in Broadmeadow, prompting a civil lawsuit.
Witnesses have been urged to come forward with any information that may help survivors.
Slater and Gordon lawyers are investigating alleged abuse at the shelter over the period 1995 to 2002.
Associate Katia Guido said "this is a civil case".
"Whether there might be an ongoing criminal investigation into similar matters would be a matter for police," Ms Guido said.
Associate Selva Dankha said "several clients" alleged they "suffered sexual abuse" at the shelter.
"It has had a devastating impact on their lives, which is why we're seeking witnesses and any other victims to come forward," Ms Dankha said.
The law firm sought to help victims "get the justice, closure and compensation they need and deserve".
Records show the former child welfare department established the shelter at 21 Lambton Road, Broadmeadow in 1966.
It was also known as "Worimi Juvenile Justice Centre" and "Worimi Detention Centre". Before 1966, it was the "Newcastle Shelter".
The shelter was for children waiting for court hearings or in custody pending trial. When it opened it had capacity for 13 boys and girls under 18.
The site now contains Broadmeadow Children's Court.
A Slater and Gordon statement said there was "no longer a time limit" on child sex abuse compensation claims under NSW law.
This meant victims could pursue a claim for damages, regardless of how long ago the abuse occurred.
Legislation was also passed in 2021 that allowed courts to set aside unfair settlements previously reached with churches and other institutions.
"Gag orders - which survivors were previously forced to sign, preventing them from speaking publicly about what they endured - can now also be lifted."
Ms Dankha said the law firm believed "there could be potential witnesses living in NSW or interstate".
"If you suffered abuse at Worimi Shelter or if you are aware of the abuse of other children, please do not hesitate to reach out," Ms Dankha said.
Slater and Gordon can be contacted at 1800 565 892.
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