TJX Settles
Framingham, Mass.–based discount retailer TXJ Cos. has settled a class-action lawsuit in the United States, Canada and Puerto Rico regarding a claim of a computer security breach. The estimated costs of the settlement, which is subject to court approval, was reflected as part of a $107 million after-tax reserve for estimated losses from the computer breach, which was recorded in the retailer’s fiscal 2008 second quarter. The settlement offers some of its affected customers a number of customerservice provisions, including free creditmonitoring and identity-theft insurance coverage, reimbursement for replaced identification cards, vouchers for consumers who shopped at TJX stores during the time of the breach, and a 15 percent discount on a one-time, threeday “customer appreciation” event at all T.J. Maxx, Marshalls, HomeGoods and A.J. Wright stores in the United States and Puerto Rico and all Winners and HomeSense stores in Canada.
