Rumours are flying around that Johnson and Johnson will fork out $4 billion to settle lawsuits over its faulty hip implants, just over a week after it agreed to settle US drug probes for $2.2 billion.

J&J is expected to make an announcement in the coming days that it has agreed to pay $4 billion to lay to rest more than 7,500 lawsuits brought by patients who have had the faulty hip devices removed, according to media reports, including from Bloomberg, which cited people close to the deal.

J&J's Articular Surface Replacement (ASR) was taken off shelves back in 2010 on concerns that as it wore down metal particles may have been released, reacting with the soft tissue surrounding the joint and entering the bloodstream, potentially leading to injury.

The metal-on-metal implant had a much higher failure rate than others on the market, a defect which the company allegedly knew about two years before the recall.

The healthcare giant has already shelled out nearly $1 billion on medical costs and publicising the ASR's recall to patients and doctors, according to Bloomberg.