The Schocken family lost several shops, mainly in the eastern region of Saxony, in 1938 during the Nazis' so-called "Aryanization" of German businesses, said a court statement.
Berlin's administrative tribunal ordered Germany to pay €30 million of compensation for the seizure as well as €20 million in interest.
The Schocken family received 30 million Deutsche Marks (around €15 million) in the 1990s for the loss of a building in the eastern city of Chemnitz, which has been transformed into an archaeological museum.
The German state can appeal the decision before the federal administrative court based in Leipzig, the tribunal said in a statement.
SEE ALSO: Slave probe exposes Audi's Nazi past