Johnson & Johnson’s shares rose nearly 4% in early trading to hit a near two-month high of $164.48 on Wednesday as the company’s $8.9 billion offer to settle talc-related lawsuits gained the support of thousands of claimants, easing an overhang on its plans to list consumer health unit Kenvue.

According to some observers, the latest settlement, which is much more than the $2 billion initial offer, may stop the litigation.

According to a note by J.P. Morgan analyst Chris Schott, the settlement sum was in line with the brokerage’s prediction of $8 billion to $10 billion.

The business announced late Tuesday that it had obtained the backing of roughly 60,000 claimants who had claimed that the talc in its well-known Baby Powder and other products caused cancer.

Lawyers representing Johnson & Johnson’s shares (NYSE:JNJ) reaffirmed that the scientific basis for the talc allegations was lacking. They charged plaintiffs’ counsel with continuing to solicit clients to secure huge settlements.

The agreement comes in response to a court decision in January dismissing J&J’s contentious “Texas two-step” strategy, in which the company attempted to shift the talc liability to a subsidiary LTL Management, which then filed for Chapter 11 bankruptcy.

According to the agreement, Kenvue would be in charge of liabilities outside of the U.S. and Canada, while J&J and LTL would have kept the talc-related liabilities for goods sold in those countries.

“We believe today’s announcement should help the IPO of 20% of the consumer unit,” Credit Suisse analyst Trung Huynh said in a note.

According to TD Cowen analyst Joshua Jennings, the backing of 60,000 plaintiffs provides the supermajority of 75% needed for a judge to approve J&J’s restructuring plans.

Overall, according to Jennings, we think the top 18 law firms representing the claims and the plaintiff supermajority strongly support the proposed settlement.