Cindy Prior, an indigenous woman and administration officer at QUT, is suing the university and three students under 18C for almost $250,000 in lost wages and general damages, plus future economic losses.

Two other students have already accepted an offer from Ms Prior's lawyers to settle for $5000, reportedly because they couldn't afford the legal costs and did not want to be linked with racism.

The remaining students - Alex Wood, Jackson Powell and Calum Thwaites - could face up to $500,000 in legal bills if the case goes to trial.