Johnson & Johnson (JNJ) experienced a more than 3% decrease in its shares on Tuesday following the rejection of its $10 billion proposal by a U.S. bankruptcy judge. The proposal aimed to settle numerous lawsuits alleging that their talc products, including baby powder, are linked to ovarian cancer. This is the third failed attempt by the company to utilize bankruptcy as a strategy in these legal battles. Johnson & Johnson has stated that it will now address the claims through the legal system and not appeal the judge's ruling. The company intends to discuss the judgment in a conference call later in the day. Critics of the proposal, such as lawyers representing cancer patients and a government bankruptcy oversight entity, argue that J&J's financial standing does not justify seeking bankruptcy protection. Despite the ongoing legal challenges, Johnson & Johnson maintains that its talc products are safe and asbestos-free, and do not cause cancer. The company ceased the sale of talc-based baby powder in the U.S. in 2020, transitioning to a cornstarch alternative. In premarket trading, the company's shares were down 3.5% at $160.08, trading at a multiple of 15.51 times its anticipated earnings over the next year, according to LSEG data. This is in comparison to multiples of 14.9 for Amgen and 9.7 for Merck. Johnson & Johnson's stock has seen a 14.7% increase in value this year up to the close of trading on Monday, resulting in a market capitalization of about $400 billion.