TJ Maxx Settles Class Action Lawsuits

TJ Maxx has announced that it has settled class action lawsuits stemming from the notorious data breach that affected 45 million credit and debit cards. The exact numbers are not known, but the AP has a few details:

The announcement did not specify the settlement cost, but noted that its estimated costs were included in a $107 million reserve included in its second-quarter report for fiscal 2008 and its estimate of $21 million in costs expected in fiscal 2009. The $107 million figure includes costs from other lawsuits not included in the customer class actions, the Framingham-based company said.

The settlement also includes Cincinnati-based Fifth Third Bancorp, which processed some payment card transactions for TJX and was named in some of the customer lawsuits.

TJX said it denied the allegations in the customer lawsuits. It concluded that more legal action would be time-consuming and expensive.

“We deeply regret any inconvenience our customers may have experienced as a result of the criminal attack on our computer system,” TJX President and CEO Carol Meyrowitz said in a statement.

TJX says it will host a three-day customer appreciation event sometime next year in which prices will be reduced by 15%. Vouchers will be issued to customers who incurred costs in connection with the breach. TJ Maxx also promised to improve their security, though it seems like just having security at all would be an improvement.

TJX Settles Customer Class Action Suits [AP]