The TJX Companies, an off-price retailer of apparel and home fashions, has entered into a settlement agreement that is expected to result in the dismissal of the putative financial institutions class action commenced as a result of the intrusion into TJX's computer system during 2005 and 2006 and all related litigation.
Under the settlement, TJX paid $525,000, which primarily reimbursed the settling banks for a portion of their expenses, excluding attorneys' fees, incurred in pursuing the putative financial institutions class action, and is encompassed within the reserve previously taken in TJX's Fiscal 2007 second quarter.
Under the agreement, AmeriFirst Bank, HarborOne Credit Union, Selco Community Credit Union, and Trustco Bank, the four remaining financial institutions that either were or sought to join as named plaintiffs in the actions, agreed to release all of their claims against TJX. Further, TJX has denied all wrongdoing.