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TJX Settles With New England Banks

According to the Boston Globe newspaper, TJX Companies has agreed with several New England banks to:

"... settle a high-profile lawsuit over payment card security practices in the wake of the record-setting data breach at the Framingham retailer that compromised up to 100 million accounts. TJX, the parent of discount retail chains including TJ Maxx and Marshalls, will pay community banks and trade groups in Massachusetts, Connecticut, and Maine a portion of their legal expenses."

Terms of the settlement were disclosed, but the newspaper added:

"...the deal won't add to the $256 million TJX previously had budgeted to deal with the breach, a spokeswoman said yesterday."

The TJX debacle is far from over:

"TJX still faces claims from an Alabama bank and probes by federal and state officials. Mary Monahan, partner at Javelin Strategy & Research in California, said the deal is a relative win for TJX and no surprise after a decision by a federal district court judge made it harder for the banks to join together to sue TJX as a lass."

If you follow this saga closely, you'll notice that TJX has given cash to everyone except to those that matter most... its customers. TJX has paid off Visa, its lawyers, and now some of the banks -- all with cash. TJX offered checks to a few customers, but most received vouchers to shop at the store. This is not a customer-friendly response to the victims of the TJX data breach, regardless of how appealing its holiday TV commercials might be.

Want to learn more? Read the TJX section of this blog and BusinessWeek. Me? I'm off to Target and Best Buy to finish my holiday shopping.

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