Johnson & Johnson raised its bid for baby powder to more than $8.2 billion.

Johnson & Johnson It has raised its offer to settle thousands of lawsuits filed by people who claim its baby powder causes cancer to more than $8.2 billion, according to people familiar with the matter.

The offer, which is an increase from the drugmaker’s previous $6.5 billion, suggests Johnson & Johnson could have to pay at least $1.7 billion more to settle all claims in the years-long lawsuit. Under the new terms, plaintiffs could receive larger payouts and cover about $650 million in legal fees, said the people, who asked not to be identified discussing the deliberations. Johnson & Johnson declined to comment.

Negotiations to reach an agreement continue. Johnson & Johnson maintains that its talc-based powders, which are no longer marketed, have never caused cancer, and that it has marketed its baby powders correctly for more than 100 years.

newly, Johnson & Johnson has won the support of more than 75% of baby powder plaintiffs in an out-of-court settlement involving allegations that the talc-based version caused ovarian cancer and other gynecological conditions. Bringing in more people can help a company use the bankruptcy courts more quickly to limit liability to the unit it created to resolve lawsuits.

The company could file its latest Chapter 11 case in the coming days, even as a group of alleged victims continue to refuse to agree to the terms so far.

Johnson & Johnson shares were down less than 1% in early trading Friday. The stock has risen about 5% so far this year, including more than 13% since its low in late May.

Earlier this month, the company said it had reached a settlement with a core group of plaintiffs, which should help move the settlement forward more quickly. The settlement came after negotiations with Allen Smith, the Mississippi attorney who filed the first lawsuit alleging that the company’s baby powder caused ovarian cancer in 2009 and who has opposed Johnson & Johnson’s settlement proposals for years.

Separately, the company said it had resolved 95% of claims that its baby powder was contaminated with asbestos and caused mesothelioma, a type of cancer that forms in the tissues surrounding the heart and lungs.

In a recent note to investors, An additional $1.1 billion would be “well within the range of what we think investors would be willing to accept the company paying,” said Guggenheim analyst Famil Divan.Previously, a potential increase of $1.1 billion from the $6.5 billion offer was reported.

“We believe that positive headlines suggesting a resolution to the issue likely influenced the movement we have seen” in the company’s shares in recent months, he wrote. Johnson & Johnson shares have risen more than 13% over the past three months.

Johnson & Johnson’s decision to sweeten its settlement offer would bring the total amount the company has agreed to pay (or has already spent) to resolve the baby powder lawsuits to more than $13.4 billion. Most of the cases are being held before U.S. District Judge Michael Shipp in Trenton for pretrial information exchange.