New Delhi, July 29 -- Johnson & Johnson has offered to pay as much as $5.5 billion to settle all legal claims alleging that its baby powder and other products containing talcum caused ovarian cancer through asbestos contamination. That sum is so huge, it could rival corporate buyout deals.

Even though the US-based company has refuted the charge of its talcum products causing cancer, it has faced such allegations for nearly a decade. That cast such a shadow over its future that it decided to pay up and move on.

The proposed settlement would cover as many as 76,000 lawsuits in American state or federal courts, underscoring the scale of its legal battle. For the proposal to go through, it must be accepted by 95% of the claimants, which see...