Guess Who's Not Getting Anything From The TJ Maxx Settlement? You! has read the fine print and they say you’re probably out of luck when it comes to the TJ Maxx Settlement:

So, it is primarily shoppers who returned goods without a receipt during the relevant period who qualify for that part of the settlement. That amounts to some 455,000 people, a mere 1% of the total number possibly affected. These people have already received a direct notification of the breach from TJX, and will also be entitled to other compensation if they experienced actual losses.

For everybody else who made a purchase at a TJX store by check, credit or debit card between certain dates, and who suffered more than a $5 loss as a result of the breach, you will be entitled to $30 to $60 in merchandise credit depending on the level of proof you have. Despite the large number of card numbers stolen, it appears that very few people actually became victims of id theft. That may best explain why most of the 45 million cardholders will not be entitled to compensation.

We thought the deal sounded pretty crappy when we read the AP report. Nice to have it confirmed. Thanks, Mouseprint!

TJX Settlement: You’ll Probably Get Nothing [Mouseprint]
(Photo:pierre lascott)


Edit Your Comment

  1. mconfoy says:

    yea, well we no longer have their new credit card either. their loss.

  2. rbb says:

    And the big winners in the class lawsuit are…

    Envelope, please.


    The lawyers (betcha didn’t see that one coming…)

  3. bohemian says:

    Hmm. How about TJMaxx loses all of my future business.

  4. DarthSensei says:

    Class action suits are invariably a sham.

  5. headon says:

    What a screwing. People have their lives adversly affected in a most egregious way, and the company screws them again. Goodbye TJ Max. Lawyers Suck!!!!!!!!!!

  6. bhall03 says:

    @ HEADON: While the settlement may not be what you hoped for, I hardly think you can say the people were screwed by the company again. The settlement was accepted by someone. Perhaps someone more familiar with the law can answer how and by whom the settlement is accepted.

  7. 6502programmer says:

    @BHALL03: The settlement, crafted by counsel for the defendant (TJ Maxx) and the plaintiff (in this case, the class of consumers, certified by the court, affected by the actions of the defendant), is submitted to the court. As long as there is some token effort to make the wronged party whole, then the settlement is usually accepted by the court.

    In this case, those who actually lost something beyond fraudulent transactions that were covered by their banks (which, incidentally, have also sued TJX to cover the funds repaid to their customers for fraudulent transactions and the $25 or so cost per customer to replace a breached card) are going to receive credit monitoring.

    Me, I have a charge from 11/05 for $80 that I didn’t authorize on a card used at TJX. Given that the breach first occurred in July 2005, it’s conceivable that this card was part of the disclosed cards. As soon as the settlement is accepted, I plan to opt out and simply file a small claims suit. $30-$60 in merchandise credit doesn’t cover my losses, so treble damages (for knowingly setting up an insecure system–A point that as a CISSP I can testify to) of $80 in losses is $240, $40 in court costs, $125 per hour in lost time in dealing with this, because, as a consultant, time is money, and I easily can file a claim for several hundred dollars.

    Class actions, inherently, do not shaft consumers. They gather together large classes of aggrieved parties into a single group to not tie up the courts. If you feel you’re getting the short end of the stick in a class action, you’re free to opt out and pursue redress on your own. If you have real losses that can be proven, this may be a prudent course of action.

  8. JackSparks says:


    I admit I don’t know the details of this particular case, but class action settlements are reached between the lead plaintiff (whose status as such is approved by the court) and the defendant. The terms of the settlement are subject to court approval as well.

    Again, said w/o knowledge of this particular case (and in light of my experience with securities class actions), the lead plaintiff is often somewhat of a figurehead, and the real decision-making power on behalf of the class rests with lead counsel (also subject to court approval). In theory, the lead plaintiff should make his or her decision re settlement based on what’s best for all members of the class, but often times lead counsel makes, or “recommends,” the decision on settlement.

    The possibilities and incentives for unfair (or less-than-fair) settlements are huge. Lead counsel agrees to a defendant-friendly settlement because they don’t want to actually try the case and they’d rather settle early, take their cut, and go home.

    It’s actually worse in consumer class actions than in securities class actions, because the latter usually involve a quantifiable financial loss, and there’s less room for BS moves like coupon settlements where the class gets, well, coupons, the defendant gets off easy, and lead counsel cleans up.

    Yet another reminder of why I should be a plaintiffs’ lawyer.


  9. rg says:

    So…what does Marshalls have to do with it? Just wondering.

  10. 6502programmer says:

    @RG: Marshalls is part of The TJX Companies, which includes T.J. Maxx, HomeGoods, Marshalls, A.J. Wright, Bob’s Stores, and The Maxx in the US.

  11. axiomatic says:

    Vote with your wallet. Shop elsewhere.

  12. Trackback says:

    TJX, the parent corporation of retailer TJ Maxx,proposed a settlement to the class action suits leveed against it in what could be largest credit card breach ever, approximately 45 million records.