TJX Companies (TJX) Announces Settlement With 41 Attorneys General

June 23, 2009 12:06 PM EDT

The TJX Companies, Inc. (NYSE: TJX) has settled with a multi-state group of 41 Attorneys General, resolving the States' investigations relating to the criminal intrusion(s) into TJX's computer system announced by TJX over two years ago. The cost for this settlement is already reflected in the reserve that TJX established in 2007.

TJX firmly believes that it did not violate any consumer protection or data security laws. The decision to enter into this settlement reflects TJX's desire to concentrate on its core business without distraction and to promote cyber security measures that will benefit all consumers.

Under the settlement, TJX has agreed to:

Provide $2.5 million to establish a new Data Security Fund for use by the States to advance effective data security and technology; Provide a settlement amount of $5.5 million together with $1.75 million to cover expenses related to the States' investigations; Certify that TJX's computer system meets detailed data security requirements specified by the States; and Encourage the development of new technologies to address systemic vulnerabilities in the United States payment card system.

Separately, eleven indictments were announced by the United States Attorney on August 5, 2008. To date, two of these indicted cyber criminals have pled guilty, and two other individuals have pled guilty to related charges on October 29, 2008 and April 28, 2009, respectively. [SM]

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