J&J subsidiary files for bankruptcy to advance $8 billion talc settlement

(Reuters) - A Johnson & Johnson (NYSE:JNJ ) subsidiary filed for bankruptcy for a third time on Friday as the healthcare giant seeks to advance an approximately $8 billion proposed settlement that would end tens of thousands of lawsuits alleging that the company's baby powder and other talc products caused cancer.

The J&J Red River Talc unit made its filing in the U.S. Bankruptcy Court for the Southern District of Texas. J&J faces lawsuits from more than 62,000 claimants who alleged that its baby powder and other talc products were contaminated with asbestos and caused ovarian and other cancers. J&J denies the allegations and has said that its products are safe.



After being rebuffed twice by federal courts, New Brunswick (NYSE:BC ) New Jersey-based J&J is attempting again to end the litigation in a so-called "Texas two-step" bankruptcy.

J&J said the Red River unit filed the bankruptcy case after it received support of about 83% of current claimants for the proposed bankruptcy plan.

Source: Investing.com