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TJX, 39 States Settle Security Breach Lawsuit
By: Lawrence Walsh
2009-06-23
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TJX will pay 39 states nearly $10 million to settle claims resulting from the 2007 breach that resulted in the compromise of more than 94 million credit cards -- the largest identity theft and data breach on record. The case stands as the example of the consequences for failing to provide adequate, prudent security.If you ever want to demonstrate the monetary cost of a security breach, look no further than the poster boy of identify thefts: TJX Companies. The incident, to date, has cost the clothing and homegoods retailer more than $320 million.
The parent company of clothing retailers T.J. Maxx and Marshalls today settled pending litigation with 39 state attorneys general for damage caused to the public good by the 2007 security breach of its corporate network that resulted in the theft of more than 94 million debt and credit card numbers.
Under the terms of the settlement, the 39 states will share a $9.75 million cash pool to compensate consumers for their losses associated with the security breach.
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