Johnson & JohnsonIt is using the bankruptcy court to resolve legal liability related to its talc products, placing a new subsidiary under Chapter 11 protection of the United States bankruptcy law.

The new company, LTL Management LLC, filed for bankruptcy in North Carolina on Thursday. In court documents, the company listed assets of up to $10 billion and liabilities of up to $10 billion. Johnson & Johnson itself did not file for bankruptcy.

Michael Ulmann, executive vice president of Johnson & Johnson, said in a statement: "We have taken these actions to make the parties involved in the cosmetic talc case understand the truth." Although we still firmly believe in the safety of our cosmetic talc products, we believe that it is in the best interests of the company and all stakeholders to solve this problem as soon as possible. "

The United States bankruptcy Court provides a central platform for companies facing significant legal liabilities to settle with claimants. Filing for bankruptcy usually terminates all pending lawsuits against a company.

Johnson & Johnson is currently facing tens of thousands of lawsuits alleging that his baby talcum powder and other talc products contain asbestos, causing cancer. In June, the U.S. Supreme Court rejected Johnson & Johnson's appeal against a Missouri court ruling that Johnson & Johnson was required to pay $2.12 billion in compensation to 22 women who developed ovarian cancer after using her talcum powder.

Johnson & Johnson said he would set up a $2 billion trust fund to pay the amount owed by the bankruptcy court's talc claim subsidiary and transfer $350 million worth of royalties to the subsidiary.