Hundreds of thousands of Iraqis who lost family members under Saddam Hussein's regime could end up joining a class action against disgraced Australian wheat exporter AWB, a lawyer says.

Two Iraqi widows last week filed legal action in a New York court against AWB, found by the Cole inquiry last year to have knowingly paid almost $300 million in kickbacks to Saddam's regime to secure lucrative wheat export contracts.

The action by Saadya Mastafa and Kafia Ismail alleges AWB contributed to the plaintiffs' injuries and damages "by giving substantial assistance to the Saddam regime, contrary to the law of nations".

Mastafa's husband was abducted by Saddam's regime before being hanged in 1997, while Ismail's husband was abducted in 2002 and died after being tortured, ABC Radio reported.

Both claim AWB is responsible for their husbands' deaths because it was a major supplier of illicit funds to Saddam's regime.