Projo Biz Blog

BOSTON -- TJX Cos. and nearly all the banks and bank associations that sued the discount retailer over a massive credit card data breach said Tuesday they have settled the lawsuit for an undisclosed amount.

Although both sides said the settlement total would remain confidential, TJX said the costs were covered by a $107 million reserve that it set aside against its second-quarter earnings.

TJX also has said that $107 million would cover the costs of another breach agreement: a Nov. 30 deal with Visa Inc. to help pay a maximum $40.9 million to help the network's card-issuing banks recover expenses to replace customers' Visa cards.

Between the two agreements and costs of about $125 million to boost security, TJX appears in good position to financially manage breach-related expenses, said Avivah Litan, a security analyst with Gartner Inc.

Framingham, Mass.-based TJX, with $18 billion in annual revenue and 2,500 stores including T.J. Maxx and Marshalls, also faces pending state and federal investigations into the breach, which could result in fines.

-- The Associated Press

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