A major fertility company has agreed to pay out $56 million in a class action settlement after it was accused of destroying embryos due to an inaccurate genetic screening program.

Patients at Monash IVF allege they were told by the company their embryos had abnormalities, after undergoing a recently introduced test known as non-invasive pre-implantation testing (NiPGT).

Monash IVF later admitted that the now-suspended NiPGT was only giving the same result as the standard test 75 to 85 per cent of the time.

Lawyers for the patients allege the mistakes led women to make life-altering decisions and many were forced to have additional treatments that may not have been needed.

Monash IVF patients launched a class action last year, alleging the fertility giant had secretly used embryos that patients had instructed be discarded.

It meant patients may have discarded viable embryos, which they allege were instead used for scientific purposes. 

The class action also revealed allegations that Repromed — a brand operated by Monash IVF — deliberately doctored the results of a clinical trial, forged patient signatures on consent forms, and burnt documents to cover up incriminating evidence of illegal experiments on patient embryos.

Margalit Injury Lawyers Managing Principal Michel Margalit said the settlement sent a clear message to the healthcare industry. 

"No amount of money can ever fully compensate for the grief and mental anguish, but this settlement does send a clear message to all corporate giants putting profits before their patients that they will be found out and there will be significant consequences for such conduct,'' Ms Margalit said.

"An embryo is not a mere inanimate object. An embryo is a chance at having a family. The impact of destroying that chance is beyond devastating, and causes real and tangible harm."

In a statement, Monash IVF Group maintained its innocence and the settlement is subject to court approval.

"In reaching an agreement through mediation, Monash IVF Group has made no admission of liability," it said.

"While we have defended the claim, we believe it is in the best interests of our patients and people to resolve the matter rather than go to trial."

Monash IVF Group's share price tumbled following the news, dropping 11 per cent in the opening hours on the ASX. 

For many of patients involved in the class action, the settlement on Thursday represented the conclusion of a years-long battle against the fertility company.

It is estimated 1,300 patients were given NiPGT, and more than half of them were told their embryos were non-viable.

Danielle Bopping, one of the two lead plaintiffs, said she hoped the decision would shed more light on the commercial fertility sector.

"We also hope that this case helps to draw attention to the fact that IVF in Australia has become a multimillion dollar industry, which does not always put the best interests of its patients first," Ms Bopping said.

Michelle Pedersen, the second lead plaintiff, said the decision went only a small way to minimising the immense harm caused by Monash IVF.

"Whilst the settlement won’t change the outcomes or remove the heartbreak for those impacted, the settlement provides some acknowledgement of Monash IVF’s failures and brings some closure for those involved," Ms Pedersen said.

"The impacts of Monash IVF’s actions have not been resolved through this settlement. Class members have had hopes, dreams and ambitions that have been shattered. Our goal was to hold Monash IVF to account and give the 700+ class members a sense of justice, we hope we have achieved this."