J&J Unit Seeks Chapter 11 For Third Time Over Baby Powder (2)

Johnson & Johnson said it received overwhelming support for a roughly $8 billion settlement of claims that its talc-based baby powder caused cancer, a key step as the company makes its third attempt to resolve thousands of lawsuits in bankruptcy court.

The company’s subsidiary, Red River Talc LLC, filed for Chapter 11 bankruptcy in Texas after 83% of claimants accepted J&J’s settlement offer. Those votes are still subject to challenge in the bankruptcy case by victims who object to the deal.

J&J called the vote before putting the unit in bankruptcy in hopes of speeding up its Chapter 11 ...