Johnson & Johnson has proposed paying $5.5 billion to resolve outstanding legal claims alleging that its talc-based products led to ovarian cancer in users.

The pharmaceutical giant, engaged in talc litigation spanning over ten years, noted the deal requires participation from at least 95 percent of current claimants to proceed.

Last year a bankruptcy judge rejected a larger $9 billion proposal from its Red River Talc unit, which would have ranked among the largest mass tort resolutions ever.

Instead of appealing the decision, Johnson & Johnson chose to continue defending the cases in court.

A federal judge recently directed plaintiffs to explain why pending claims should continue after their experts failed to establish a direct connection between the products and cancer diagnoses.

"The Court’s order placed plaintiffs in an untenable position of having to present specific causation evidence to maintain their claims that does not exist," stated Erik Haas, worldwide vice president of litigation at Johnson & Johnson, in a prepared release.

Under the new proposal, the firm plans an initial payment capped at $3 billion in the coming year, with further installments not required until 2028.

"While we are confident the company would have ultimately prevailed with further litigation, as it has in the vast majority of cases tried to date, this resolution allows the company to put this matter behind it and remain focused on its mission to develop medicines and devices that save lives," Haas added.

The firm indicated it had already resolved roughly 95 percent of filed mesothelioma claims, all state consumer protection actions, and disputes involving talc suppliers.

Shares in the New Brunswick, New Jersey-based company climbed more than 2 percent in premarket trading on Tuesday.