Johnson & Johnson (JNJ.US) has agreed to pay more than $8.2 billion to settle lawsuits over its baby powder's cancer risk.

Johnson & Johnson (JNJ.US) has raised the amount it is willing to pay to settle thousands of lawsuits alleging its baby powder caused cancer to over $8.2 billion from its previous offer of $6.5 billion, according to people familiar with the matter. The decision to increase the settlement amount will bring the total amount Johnson & Johnson has agreed to pay or has already paid to resolve lawsuits related to its baby powder to over $13.4 billion. The new terms also allow claimants to receive higher compensation and about $650 million in legal fees, the people said. Negotiations are ongoing.