The Magpies, including chief executive Craig Kelly, are facing damning claims that on Monday were filed in the Federal Circuit and Family Court of Australia.
Mark Cleaver, the club's former head of First Nations strategy, is the sole applicant in the documents, while the Collingwood Football Club is the only respondent.
"The allegations in this case call into question whether the Collingwood Football Club has learned anything from its multiple self-inflicted racism scandals," Daniel Victory, principal with Maurice Blackburn Lawyers said in a statement to AAP.
"We are entitled to expect more from a club that has promised to do better.
"The conduct alleged in this case has no place in society or any sporting club and especially not in a league that holds itself out as an agent for social change.
"Football fans have a right to feel let down once again by the Collingwood Football Club.
"The AFL should consider penalising premiership points from clubs if allegations like this are proven."
In 2021, Collingwood commissioned an independent review to deal with racism.
Former Magpies president Eddie McGuire labelled the release of the report "a historic and proud day".
A week after his highly-criticised comments, McGuire stood down following more than 20 years in charge.
Collingwood and the AFL have been contacted for comment.
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