The TJX Companies, Inc. has entered into a settlement agreement with all but one of the seven banks and bankers associations that sued TJX in a putative class action as a result of the intrusion into TJX’s computer system. Under the agreement, the Massachusetts Bankers Association, Connecticut Bankers Association and Maine Association of Community Banks, along with Eagle Bank, Saugusbank, and Collinsville Savings Society, will dismiss all of their claims against TJX.

Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “It has been almost one year since TJX discovered that our computer system had been criminally attacked. In that time, we have further strengthened our security and achieved full compliance with the Payment Card Industry Data Security Standards. We support the intent of these standards and continue to take our responsibility to protect customer data seriously. However, the TJX experience underscores broader challenges facing the U.S. payment card system that require urgent action by merchants, banks, payment card companies and associations, and we look forward to greater cooperation in order to better serve and protect customers.”

As part of the agreement, the three bankers associations are recommending that the Visa issuers among their 292 member banks where appropriate accept the Alternative Recovery Offer provided for in the agreement among Visa, TJX, and TJX’s acquiring bank announced on November 30, 2007.

The financial terms of the settlement were not disclosed, but the amount paid by TJX primarily reimbursed the settling bankers associations and banks for a negotiated portion of the expenses they incurred in this case, excluding attorney’s fees, and is encompassed within the reserve previously taken in TJX’s fiscal 2007 second quarter. Further, TJX has denied all wrongdoing. The agreement follows the court’s recent ruling denying the plaintiffs’ motion to represent a class of banks in this action. That ruling is subject to a pending motion for reconsideration and a possible appeal by the non-settling plaintiff bank.