December 19, 2007
TJX settles with Maine banks
TJX Companies yesterday settled for an undisclosed amount a lawsuit filed by three bank associations, including the Maine Association of Community Banks, over a data security breach that compromised the credit card numbers of more than 45 million TJX customers.
The Maine Association of Community Banks, along with the Massachusetts Bankers Association and Connecticut Bankers Association, sued Framingham, Mass.-based TJX, which operates 2,500 stores including Marshalls and T.J. Maxx, after it announced in January 2007 that at least 45.7 million customer credit card numbers were stolen by hackers between 2005 and 2006. The bank associations sought unspecified damages for the costs associated with reissuing customers' credit cards and monitoring for fraud. Chris Pinkham, president of the Maine Association of Community Banks, was not available for comment this morning.
Although the settlement total is confidential, TJX said the costs were covered by a $107 million reserve that it set aside against its second-quarter earnings, according to the Associated Press.
The Maine Association of Community Banks, along with the Massachusetts Bankers Association and Connecticut Bankers Association, sued Framingham, Mass.-based TJX, which operates 2,500 stores including Marshalls and T.J. Maxx, after it announced in January 2007 that at least 45.7 million customer credit card numbers were stolen by hackers between 2005 and 2006. The bank associations sought unspecified damages for the costs associated with reissuing customers' credit cards and monitoring for fraud. Chris Pinkham, president of the Maine Association of Community Banks, was not available for comment this morning.
Although the settlement total is confidential, TJX said the costs were covered by a $107 million reserve that it set aside against its second-quarter earnings, according to the Associated Press.
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