June 18 (Reuters) - Johnson & Johnson ( JNJ ) is facing

a new proposed class action seeking damages and medical

monitoring on behalf of women who have been diagnosed with

cancer, or might develop it in the future, allegedly as a result

of using the company's baby powder and other talc products.

The lawsuit, filed on Monday in New Jersey federal court, is

the first to seek medical monitoring, or regular testing meant

to catch cancer early, on behalf of talc users. The proposed

class could include thousands of women, but would not include

the more than 61,000 people who have already filed personal

injury lawsuits over J&J's talc, claiming it contains

cancer-causing asbestos.

J&J maintains its talc is safe, asbestos-free and does not

cause cancer.

The law firms behind the new case are opposed to J&J's

proposal to settle nearly all talc claims against it for $6.48

billion through a prepackaged bankruptcy. The same firms are

also pursuing a separate class action seeking a court order

blocking the bankruptcy.

The bankruptcy proposal needs support from 75% of talc

claimants, with a three-month voting period ending on July 26.

Erik Haas, J&J's worldwide vice president of litigation,

said in a statement that plaintiffs' lawyers brought Monday's

"meritless" lawsuit to thwart the bankruptcy plan because they

can collect more fees outside of bankruptcy, putting their own

interests ahead of their clients.

"The plaintiff firms should cease the obstructionist

behavior, and let their clients decide for themselves whether to

accept the pending offer," he said.

Lawyers opposed to the deal have denied that they are

motivated by higher fees and said the bankruptcy proposal would

not adequately compensate their clients.

Chris Tisi, one of the lawyers bringing the new lawsuit,

said in a statement that medical monitoring was necessary

because the "inadequate funding" of the bankruptcy plan "doesn't

realistically address the needs of women who could develop

ovarian cancer in the future because of past baby powder use."

Both the proposed settlement and the new class action

concern claims that talc caused ovarian and other gynecological

cancers, which make up the vast majority of cases. A smaller

number of claims have been brought by people who developed

mesothelioma, most of which have settled.

J&J has already tried and failed twice to resolve current

and future talc claims through bankruptcy.

The legal strategy, known as a Texas two-step, involves

creating a subsidiary to absorb the company's talc liability,

which then declares bankruptcy to settle the cases. The previous

efforts failed because courts found that the new subsidiary

lacked the "financial distress" to justify bankruptcy.

(

Reporting By Brendan Pierson in New York, Editing by Alexia

Garamfalvi and Bill Berkrot)