TJX settles with Attorneys General over computer intrusions

FRAMINGHAM, Mass. The TJX Companies announced that it 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 more than two years ago. The cost for this settlement is already reflected in the reserve that TJX established in 2007.

Jeffrey Naylor, chief financial and administrative officer of The TJX Companies, stated, “This settlement furthers our goal of enhancing consumer protection, which has been central to TJX. Under this settlement, TJX and the Attorneys General have agreed to take leadership roles in exploring new technologies and approaches to solving the systemic problems in the U.S. payment card industry that continue to plague businesses and institutions and that make consumers in the United States worldwide targets for increasing cyber crime.”

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.