TJX Settles With Consumers; Financial Institutions Next?

BOSTON – A federal court is expected tomorrow to approve a $120 million settlement between TJX Cos. and consumers over the biggest data breach ever, leaving its suit with banks and credit unions still unresolved. Under the proposed settlement, filed with the U.S. District Court for the Eastern District of Massachusetts, about 455,000 consumers who can show they were harmed by the breach of their financial records will be entitled to as many as two $30 dollar shopping vouchers at one of the company’s nine retail chains; three years of free credit monitoring; and an invitation to a one-day 15%-off sale at the stores. TJX indicated in financial filings the settlement could cost it $118 million. Lawyers for the consumers stand to earn $6.5 million from the settlement. TJX stores include TJ Maxx, Marshalls, HomeGoods, A.J. Wright, Winners and HomeSense, among others. Lawyers representing the banks in the breach suit said they hope the settlement with consumers indicates a readiness for the company to settle claims with financial institutions, which reacted to the massive data breach by cancelling and reissuing more than one a million cards.