A Queensland law firm that has launched the first legal action against the Federal Government's handling of the Equine Flu outbreak in 2007 believes the action will be a significant test case that could spark more than 600 claims.

Gold Coast firm Attwood Marshall launched a statement of claim on behalf of client Wattle Brae Stud, seeking compensation for losses suffered from the outbreak.

The firm said it chose Wattle Brae Stud as the test case because it served as a typical example of a thoroughbred stud affected by the outbreak.

Wattle Brae Stud claims Federal Government officials allowed the virus to escape the Eastern Creek quarantine station and contaminated other areas through careless hygiene standards. It claims it suffered losses of more than $3 million from the outbreak.

Attwood Marshall said the case will prove a significant test case and if successful, could result in more than 600 cases with compensation amounting to more than $60 million.