J&J shares surge 4% a day after $8.9bn offer to settle multiple baby talc legal cases

Johnson & Johnson campus in Irvine, California: Monies in the settlement of the multiple baby talc cases would be paid out over 25 years.

Johnson & Johnson's shares jumped 4% a day after the company offered $8.9bn (€8.1bn) to settle multiple baby talc-related lawsuits in the US, easing an overhang on its plans to list its consumer health unit Kenvue.

Some analysts were positive about the new settlement that is far bigger than the original offer of $2bn, as they believe it could bring an end to the lawsuit. JP Morgan analyst Chris Schott said the settlement amount was in line with the broker's estimate of $8bn to $10bn.