No chief executive officer of a big company wants to file for bankruptcy if it is not strictly necessary.
There is a neater approach:
You put the liabilities in a box. You create a new subsidiary, you put the product-that-kills-people business in that subsidiary, and you transfer the liabilities related to that product to the subsidiary. This is, in general, hard to do, but in fact Texas has a weird merger law that allows it: You can “merge” your company into two companies, one with the liabilities and one with the rest of the business.
You have the box — the new subsidiary with all the product liabilities — file for bankruptcy. You get fair and consistent adjudication of the product claims, inside the box, and the rest of the company just goes along relatively normally.