The TJX Companies, Inc. Agrees to Settlement of Customer Class Actions; Subject to Court Approval; Estimated Costs of Settlement Already Reflected and Disclosed

    FRAMINGHAM, MASS., September 21 /CNW/ - The TJX Companies, Inc. (NYSE:  
TJX) today reported that it has entered into a Settlement Agreement with
respect to the customer class actions in the United States, Canada and Puerto
Rico relating to customer claims arising from the criminal intrusion(s) into
TJX's computer system. The settlement is subject to court approval and other
conditions. The estimated costs for this settlement were reflected as part of
the Company's previously reported fiscal 2008 second quarter charge and
estimated fiscal 2009 non-cash costs.

    Carol Meyrowitz, President and Chief Executive Officer of The TJX
Companies, stated, "From the inception of our Company, our customers have
always come first. We deeply regret any inconvenience our customers may have
experienced as a result of the criminal attack on our computer system.
Importantly, we truly appreciate our customers' continued patronage. TJX has
been working diligently to reach a settlement that offers a good resolution
for our customers. This Settlement Agreement addresses the different ways
customers have told us they have been impacted by the intrusion(s). TJX
remains committed to providing a secure shopping experience for our customers
along with the exciting fashions, brands and great values for which we are
famous. We believe that the terms of this settlement are beneficial to our

    TJX has established a helpline in the U.S. (866) 484-6978 and Canada
(866) 903-1408 and is providing information on its website,, to
respond to customer questions regarding the Settlement Agreement.

    The Settlement Agreement, which is subject to court approval and other
conditions, includes the following provisions:

    --  Those customers who returned merchandise without a receipt to our
stores and to whom TJX sent letters reporting that their drivers' license or
other identification information may have been compromised in the
intrusion(s), will be offered three years of credit monitoring along with
identity theft insurance coverage (two years for those who previously accepted
TJX's credit monitoring/identity theft insurance offer), paid for by TJX;

    --  TJX will also reimburse these customers for the documented cost of
certain drivers' license replacements and, if their drivers' license or other
ID numbers were the same as their social security number, for certain losses
from identity theft;

    --  For any customers who show they shopped at TJX stores located in the
U.S., Canada and Puerto Rico (excluding Bob's Stores) during the relevant
periods and incurred certain costs as a result of the intrusion, TJX will
offer vouchers for use in these TJX stores in the country in which they

    --  TJX will hold a future, one-time, three-day Customer Appreciation
special event in which prices at all T.J. Maxx, Marshalls, HomeGoods and A.J.
Wright stores in the U.S. and Puerto Rico and all Winners and HomeSense stores
in Canada will be reduced by 15%. The timing of this future special event will
be advertised, open to all customers and is expected to occur sometime in
2008, at the earliest.

    --  The settlement is contingent on completion of an evaluation by
plaintiffs' independent security expert on the computer security enhancements
made and planned by TJX and acceptance by the plaintiffs' counsel of these

    Estimated costs to TJX related to this settlement were reflected as part
of the $107 million (after tax) reserve for estimated potential losses from
the intrusion(s) recorded in the Company's fiscal 2008 second quarter and
previously reported estimated future non-cash charges of $21 million (after
tax) anticipated to be taken in fiscal 2009.

    This settlement covers all customer class actions in the United States,
Puerto Rico and Canada with respect to the intrusion(s) and is subject to
satisfaction of various conditions and final court approval after notice to
the plaintiff class and expiration of the time for appeal from any order of
the court approving the settlement. While TJX denies the claims and
allegations underlying the putative class actions, TJX has concluded that
further legal activity would be time consuming and expensive, making it
desirable that the actions be settled. The settlement agreement is available
on TJX's website,

    The TJX Companies, Inc. is the leading off-price retailer of apparel and
home fashions in the U.S. and worldwide. The Company operates 841 T.J. Maxx,
767 Marshalls, 278 HomeGoods, and 128 A.J. Wright stores, as well as 34 Bob's
Stores, in the United States. In Canada, the Company operates 186 Winners and
70 HomeSense stores, and in Europe, 214 T.K. Maxx stores. TJX's press releases
and financial information are also available on the Internet at

OF 1995: Various statements made in this release are forward-looking and
involve a number of risks and uncertainties. All statements that address
activities, events or developments that we intend, expect or believe may occur
in the future, including estimates of potential losses from the computer
intrusion(s), are forward-looking statements. The following are some of the
factors that could cause actual results to differ materially from the
forward-looking statements: completion of the settlement including failure to
satisfy all conditions to the settlement including court approval; the results
and effects of the intrusion or intrusions into our computer system including
the losses and expenses we may incur (which may be different from the amount
we reserved and estimated and which differences may be material) and
consequences to our business (including potential effects on our reputation
and our sales) and to the value of our company and related value of our stock;
our ability to successfully expand our store base and increase same store
sales; risks of expansion and costs of contraction; our ability to
successfully implement our opportunistic inventory strategies and to
effectively manage our inventories; successful advertising and promotion;
consumer confidence, demand, spending habits and buying preferences; effects
of unseasonable weather; competitive factors; factors affecting availability
of store and distribution center locations on suitable terms; factors
affecting our recruitment and employment of associates; factors affecting
expenses; success of our acquisition and divestiture activities; our ability
to successfully implement technologies and systems and protect data; our
ability to continue to generate adequate cash flows; our ability to execute
the share repurchase program; availability and cost of financing; general
economic conditions, including gasoline prices; potential disruptions due to
wars, natural disasters and other events beyond our control; changes in
currency and exchange rates; import risks; adverse outcomes for any
significant litigation; changes in laws and regulations and accounting rules
and principles; adequacy of reserves; closing adjustments; effectiveness of
internal controls; and other factors that may be described in our filings with
the Securities and Exchange Commission. We do not undertake to publicly update
or revise our forward-looking statements even if experience or future changes
make it clear that any projected results expressed or implied in such
statements will not be realized.

For further information:

For further information: The TJX Companies, Inc. Sherry Lang Senior Vice
President Investor and Public Relations (508) 390-2323

Organization Profile


More on this organization

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890