J&J subsidiary files for bankruptcy to settle $8.9B talc claims.

Johnson & Johnson subsidiary LTL Management has filed for bankruptcy protection for a second time to pursue an $8.9 billion settlement to resolve tens of thousands of lawsuits alleging that talc in its Baby Powder and other products caused cancer. The settlement follows a January appeals court ruling invalidating J&J’s “Texas two-step” bankruptcy maneuver, in which it sought to offload the talc liability onto a subsidiary that immediately filed for Chapter 11. The J&J subsidiary filed for bankruptcy in New Jersey, the same jurisdiction where it faced the appeals court defeat.