A Johnson & Johnson 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.

Red River Talc, a Johnson & Johnson subsidiary, filed for Chapter 11 bankruptcy to settle ovarian cancer claims with an $8B settlement plan. Read more here.

(Reuters) - A Johnson & Johnson 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 healthcare-products company is taking another shot at resolving mass cancer lawsuits in chapter 11 after two failed attempts.

“Absent a Chapter 11 resolution, the talc litigation would continue for decades, at great expense to the Debtor but with no benefit to claimants,” the J&J unit’s lawyers said in court papers. Under its latest plan, baby powder victims would receive average payouts ranging from $75,000 to $175,000 depending on the severity of their injuries.

Beasley Allen opposed the Chapter 11 case, which includes up to $10 billion in nominal compensation to talc claimants. 'This proposed compensation is a gross undervaluation,' principal Andy Birchfield said in a statement to Law.