Johnson & Johnson (JNJ.US) has increased the settlement amount for the baby powder carcinogenic lawsuit to over $8.2 billion.

According to sources familiar with the matter, Johnson & Johnson has increased the settlement amount for thousands of lawsuits alleging its baby powder causes cancer to over $8.2 billion, up from the previous offer of $6.5 billion. The decision to increase the settlement amount will bring the total amount the company has agreed to pay or has already paid to resolve baby powder-related lawsuits to over $13.4 billion. Sources added that under the new terms, claimants may receive higher compensation as well as approximately $650 million in legal fees. Settlement negotiations are ongoing. Johnson & Johnson maintains that talcum powder (now discontinued) has never been proven to cause cancer. The company recently obtained agreements from over 75% of the plaintiffs in baby powder-related lawsuits to reach out-of-court settlement agreements. If more plaintiffs accept the agreement, it will help Johnson & Johnson expedite bankruptcy proceedings, confining liability to a subsidiary established to settle legal claims. The company may reportedly file for bankruptcy in the coming days. Johnson & Johnson has also resolved 95% of allegations regarding its baby powder being contaminated with asbestos and causing mesothelioma, a type of cancer affecting the lungs, heart, and other organ tissues.