TJX Companies, banks settle suit over data breach
The TJX Companies Inc. has entered into a settlement agreement with all but one of the seven banks and bankers associations that sued TJX as a result of a data breach last year.
The amount paid by TJX primarily reimbursed the settling bankers associations and banks for a negotiated portion of the expenses they incurred in the case, excluding attorney's fees, and is encompassed within the reserve previously taken in TJX's fiscal 2007 second quarter.
The Massachusetts Bankers Association, Connecticut Bankers Association, Maine Association of Community Banks, Eagle Bank, Saugusbank and Collinsville Savings Society will dismiss all of their claims against TJX. In addition, TJX has denied any wrongdoing.
The agreement follows the court's recent ruling denying the plaintiff's motion to represent a class of banks in this action. That ruling is subject to a pending motion for reconsideration and a possible appeal by the non-settling plaintiff bank.
TJX has “further strengthened our security and achieved full compliance with the Payment Card Industry Data Security Standards,” said Carol Meyrowitz, president and CEO of The TJX Companies, in a statement.