The news put the company's shares under renewed pressure, closing down another 4 per cent at $3.85.

Litigation funder IMF Bentham announced on Monday it would finance an action planned by Slater and Gordon Lawyers, while later in the day, ICP said it was funding a separate action planned by Maurice Blackburn.

"The claims relate to alleged misleading or deceptive conduct and an alleged breach by Bellamy's of its continuous disclosure requirements in connection with its trading prospects and future earnings performance during the period between 14 April 2016 to 9 December 2016," IMF Bentham said.

Maurice Blackburn is targeting investors who acquired their shares in Bellamy during the same time frame, until December 9, but a cap has been introduced on how much the litigation funder, in its case ICP, may receive. Although participating investors will not receive less than 50 per cent of the payout, after costs.

"After consultation with some of the largest institutional shareholders on the ASX, [ICP] offers benchmark funding commissions of between eight and 25 per cent, meaning more net returns to investors upon success," ICP chief executive, Mr John Walker said.

"ICP has also included a safety-net provision that offers additional investor protection by ensuring that they won't receive any less than 50 per cent of a net recovery [after costs are accounted for] on success."

Under this approach, if the intended legal action is settled quickly, then the commission flowing to ICP is closer to 8 per cent, while it will rise the longer the action proceeds.

"If any settlement is not large, clients would receive at least half of the proceeds, after legal costs," Mr Walker said. "That cap has come from institutions letting the market know what they want in litigation funding."

A spokesman for Bellamy's said it was not aware of any legal action being taken.

IMF Bentham said it was to fund the class action "on a conditional basis" ahead of a decision to proceed with the action, or not, while Maurice Blackburn's decision to pursue Bellamy's marks a step up in competition between class action litigants.

"Greater competition in the litigation funding arena would ultimately see better products offered for clients to drive down costs and see more money returned to those seeking justice – this offering does just that," Maurice Blackburn principal Ben Slade said of his group's tie-up with ICP in taking on Bellamy's.

"The class action will be hugely disturbing for the current directors," Jan Cameron, a co-founder of Bellamy's said. "For the individual directors to be in this position is truly awful – it is sleepless nights stuff."

Ms Cameron, who also co-founded the clothing retailer Kathmandu, said she would be seeking to force Bellamy's to re-issue a letter it sent to shareholders last week, since she claims the letter contains "material inaccuracies".

"There are material inaccuracies which will require a new statement to shareholders," she said.

In its criticism of the slate of new independent directors put forward by Ms Cameron and her associates, Bellamy's has pointed to their limited experience on the boards of public companies.

But given the limited assets of Bellamy's, some say the sole asset of Bellamy's is the brand, she said.

"Without inflating my abilities, I get brands. The brand is the only thing that is going to pull Bellamy's out" of its present difficulties, Ms Cameron said. "[The brand] is a huge thing for Bellamy's. I get brands. I'd prefer a good brand than material assets."