Johnson & Johnson has increased its allocation to nearly $9 billion to settle claims that its baby powder, which contains talc, caused cancer. This amount is more than four times the company’s previous settlement budget. J&J’s subsidiary, LTL Management, will reapply for Chapter 11 bankruptcy protection and seek court approval for a proposed plan that will result in one of the largest product-liability settlements in US history. The revised settlement amount is supported by more than 60,000 parties who have filed lawsuits alleging harm from J&J talcum powder. However, J&J executives emphasized that the company is not admitting any wrongdoing. The lawsuits claim that the talc-based product caused users to develop ovarian cancer or mesothelioma. These claims have resulted in a drop in J&J’s sales of baby powder, with the company stopping sales of its talc-based products in 2020 and announcing plans to cease sales of the product worldwide last year. J&J’s stock rose 3% in after-hours trading following the announcement of the revised settlement amount.

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