Record $25m to be paid out in Bonsoy milk class action

Almost 500 people who became ill after drinking soy milk will share in a record $25 million settlement.

Maurice Blackburn Lawyers says the manufacturer, exporter and distributor of Bonsoy soy milk have agreed to compensate victims with a $25 million payout, which it says is the highest settlement of a food safety class action in Australia.

The law firm said the class action alleged that unsafe levels of iodine were added to the ingredients of the soy milk product via a seaweed product called Kombu.

Those affected claimed they suffered damaging health consequences, with thyroid and other health problems, Maurice Blackburn class action principal Jacob Varghese said on Monday.

"There are nearly 500 people we're representing in this class action, and all of them have been badly affected in a variety of ways," he said.

The defendants have not admitted liability.

The $25 million will be paid into a fund to be distributed to participants in the class action.

The settlement is subject to the approval of the Victorian Supreme Court.