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(RTTNews) - Healthcare giant Johnson & Johnson (JNJ) on Wednesday announced a proposed Plan of Reorganization, for the comprehensive and final resolution of all current and future claims related to ovarian cancer arising from cosmetic talc litigation against it and its affiliates in the United States.

The consensual and Prepackaged Reorganization by its subsidiary, LLT Management LLC is expected to resolve 99.75% of all pending talc lawsuits against Johnson & Johnson and its affiliates in the United States.

The Plan provides for a three-month solicitation period during which ovarian claimants would be informed of its terms and would have the opportunity to vote for or against it. Such an opportunity was denied in prior bankruptcy cases. If 75% of claimants vote in favor of the Plan, a Company subsidiary would file a consensual "prepackaged" Chapter 11 bankruptcy to secure its confirmation.

The Plan commits the Company to pay ovarian claimants a present value of approximately $6.475 billion to be paid over 25 years, which is expected to be a far better recovery than the claimants stand to recover at trial.

To account for the comprehensive resolution of the ovarian claims through the Plan, as well as the other settlements, the company has recorded an incremental charge of approximately $2.7 billion in the first quarter of 2024. The total reserve is approximately $11.0 billion or $13.7 billion nominal payable over 25 years.

The company clarified that it would continue to pursue alternative resolution pathways while reiterating that none of the talc-related claims against it have merit.

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