According to informed sources, Johnson & Johnson (JNJ.US) has increased the settlement amount for thousands of lawsuits alleging that its baby powder causes cancer to over $8.2 billion, previously the company proposed a settlement amount of $6.5 billion. The decision to increase the settlement amount will result in Johnson & Johnson agreeing to pay or having already paid a total amount of over $13.4 billion to resolve baby powder-related lawsuits.

Sources added that under the new terms, claimants may receive higher compensation as well as approximately $650 million in legal fees. Settlement negotiations are underway.

Johnson & Johnson maintains that talcum powder (already off the shelves) has never caused cancer. The company recently obtained the agreement of over 75% of the plaintiffs in baby powder-related lawsuits and reached an out-of-court settlement agreement.

If more plaintiffs accept the agreement, it will help Johnson & Johnson expedite the bankruptcy process and limit the liability to a subsidiary set up to resolve legal disputes. According to reports, the company may file for bankruptcy in the coming days.

Johnson & Johnson has also resolved 95% of the allegations regarding its baby powder being contaminated with asbestos and causing mesothelioma, a cancer of the lungs, heart, and other organs.