TJX Sets Aside $41M in Credit-Card Case
New York City, The TJX Cos. Inc. said Friday it reached a settlement with Visa Inc. and Fifth Third Bancorp for potential claims regarding a massive security breach that put consumers' credit-card data at risk.
The discount clothing retailer will pay up to $40.9 million in pre-tax recovery payments to eligible U.S. Visa issuers who issued payment-card accounts identified to Visa by Fifth Third or TJX. At least 80% of the issuers must accept by Dec. 19 for the settlement to finalize. The estimated costs of this settlement are already reflected in the charge related to the computer intrusion that TJX took in its fiscal 2008 second quarter.
The settlement is conditioned on acceptance of the Settlement Offer by Dec. 19 by issuers of at least 80% of the eligible account.