A group of 107 angry travellers say they fell ill after eating under-cooked food and using a swimming pool contaminated by human waste at Sarigerme Holiday Village in Dalaman, Turkey in 2009.
The group is suing First Choice Holidays and Flights for compensation.
A High Court writ claims buffet food was lukewarm and items like chicken were not cooked properly.
Flies and wasps also allegedly infested food areas and a pool had human waste in it.
Last night a First Choice spokeswoman said their lawyers are in talks with a no-win no-fee legal firm to resolve the case.
"We closely audit all the resorts to which we operate, including the Holiday Village Turkey, to ensure that health, hygiene and comfort levels are maintained."