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The parent company of retailers T.J. Maxx and Marshalls will pay $9.75 million in a settlement with Rhode Island and 40 other states in connection with a massive data theft that exposed tens of millions of credit and debit card numbers.

Framingham, Mass.-based TJX (TJX:NYSE) said Tuesday it will pay $2.5 million to create a data security fund for states as well as a fine of $5.5 million in addition to $1.75 million to cover expenses related to the states' investigations. Rhode Island will receive $45,000.

"This settlement represents another one of this office's actions to protect the residents of Rhode Island from those who seek to steal personal information for their own financial gain," Attorney General Patrick C. Lynch said. "Its terms require that TJX tighten up its procedures to prevent security breaches from placing its retail customers, including thousands in Rhode Island, at risk for identity theft."

TJX stressed that it "firmly believes" it did not violate any consumer protection or data security laws. "The decision to enter into this settlement reflects TJX's desire to concentrate on its core business without distraction and to promote cyber security measures that will benefit all consumers," the company said in a statement.

 Tags  data security Rhode Island TJX

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