10:15 AM EDT, 05/01/2024 (MT Newswires) -- (Updates to add detail of the plan in the second paragraph, more information in the third and fourth paragraphs and the company's latest stock move in the fifth paragraph.)

Johnson & Johnson ( JNJ ) announced a proposed plan by its subsidiary, LLT Management, for the final resolution of all current and future claims tied to ovarian cancer stemming from cosmetic talc litigation against it and its affiliates in the US.

The plan commits the company to pay ovarian claimants a present value of roughly $6.48 billion, to be paid over 25 years. It would resolve nearly all of the pending talc lawsuits against the company and its affiliates in the US, the drugmaker said Wednesday.

Ovarian claimants will have the opportunity to vote for or against the plan, and, if 75% of claimants vote in favor of the plan, a company unit may file a consensual "prepackaged" Chapter 11 bankruptcy to secure its confirmation, the company said.

Johnson & Johnson ( JNJ ) "reiterates that none of the talc-related claims against it have merit. The claims are premised on the allegations that have been rejected by independent experts, as well as governmental and regulatory bodies, for decades," the company said.

Shares of the company rose 3.7% in recent Wednesday trading.

Price: 150.02, Change: +5.42, Percent Change: +3.75