The TJX Companies, Inc. has entered into a Settlement Agreement with respect to the customer class actions in the United States, Canada and Puerto Rico relating to customer claims arising from the criminal intrusion(s) into TJX's computer system. The settlement is subject to court approval and other conditions. The estimated costs for this settlement were reflected as part of the company's previously reported fiscal 2008 second quarter charge and estimated fiscal 2009 non-cash costs.


Estimated costs to TJX related to this settlement were reflected as part of the $107 million (after tax) reserve for estimated potential losses from the intrusion(s) recorded in the company’s fiscal 2008 second quarter and previously reported estimated future non-cash charges of $21 million (after tax) anticipated to be taken in fiscal 2009.

 

Carol Meyrowitz, president and CEO of The TJX Companies, stated, “From the inception of our Company, our customers have always come first. We deeply regret any inconvenience our customers may have experienced as a result of the criminal attack on our computer system. Importantly, we truly appreciate our customers’ continued patronage. TJX has been working diligently to reach a settlement that offers a good resolution for our customers. This Settlement Agreement addresses the different ways customers have told us they have been impacted by the intrusion(s). TJX remains committed to providing a secure shopping experience for our customers along with the exciting fashions, brands and great values for which we are famous. We believe that the terms of this settlement are beneficial to our customers.”

The Settlement Agreement, which is subject to court approval and other conditions, includes the following provisions:




  • Those customers who returned merchandise without a receipt to our stores and to whom TJX sent letters reporting that their drivers’ license or other identification information may have been compromised in the intrusion(s), will be offered three years of credit monitoring along with identity theft insurance coverage (two years for those who previously accepted TJX's credit monitoring/identity theft insurance offer), paid for by TJX;


  • TJX will also reimburse these customers for the documented cost of certain drivers’ license replacements and, if their drivers’ license or other ID numbers were the same as their social security number, for certain losses from identity theft;


  • For any customers who show they shopped at TJX stores located in the U.S., Canada and Puerto Rico (excluding Bob’s Stores) during the relevant periods and incurred certain costs as a result of the intrusion, TJX will offer vouchers for use in these TJX stores in the country in which they reside.


  • TJX will hold a future, one-time, three-day Customer Appreciation special event in which prices at all T.J. Maxx, Marshalls, HomeGoods and A.J. Wright stores in the U.S. and Puerto Rico and all Winners and HomeSense stores in Canada will be reduced by 15%. The timing of this future special event will be advertised, open to all customers and is expected to occur sometime in 2008, at the earliest.

The settlement is contingent on completion of an evaluation by plaintiffs’ independent security expert on the computer security enhancements made and planned by TJX and acceptance by the plaintiffs’ counsel of these enhancements.