A U.S. bankruptcy court judge has denied Johnson & Johnson's settlement plan related to baby powder containing talc, providing another setback in the company's efforts to resolve the matter. This is the third bankruptcy case for a J&J company as it relates to the baby powder issue.

Johnson & Johnson has signaled that it will attempt to disqualify certain plaintiffs' lawyers and use other aggressive litigation tactics as it resumes defending tens of thousands of lawsuits alleging that its baby powder and other talc products caused ovarian cancer after three failed attempts to resolve the cases in a bankruptcy settlement.

Key Takeaways Johnson & Johnson shares tumbled Tuesday to lead S&P 500 decliners after the health care giant failed to reach a settlement in liability cases related to its baby powder and other talc products.