Johnson & Johnson didn’t wrongly manipulate bankruptcy rules when it filed an insolvency case in Texas and not its home state of New Jersey, a federal judge ruled, increasing the odds the consumer health giant can settle claims its baby powder gave women cancer.

A Johnson & Johnson subsidiary can pursue its third attempt to resolve tens of thousands of lawsuits alleging its talc products caused cancer in a federal bankruptcy court in Texas, a judge ruled on Thursday,

The Houston judge rejected requests from lawyers for claimants who wanted the proceeding transferred to New Jersey.

A federal court in Texas has reportedly found that Johnson & Johnson (NYSE:JNJ) didn’t manipulate the bankruptcy system when it filed for bankruptcy of its talc powder unit in Texas rather than New Jersey,