The TJX Companies, Inc. Announces Settlement Agreement with MasterCard; Estimated Costs Already Reflected in Previously Announce
FRAMINGHAM, Mass.--(www.AllPayNews.com)--The TJX Companies, Inc. (NYSE: TJX) today announced that it has entered into a Settlement Agreement with MasterCard International Incorporated. Under the agreement, alternative recovery offers will be made by MasterCard to eligible MasterCard issuers worldwide that issued payment cards claimed by them to have been affected by TJX’s previously announced unauthorized computer intrusion(s), and MasterCard will recommend that eligible MasterCard issuers accept such offers.
TJX has agreed to fund up to a maximum of $24 million pre-tax in alternative recovery payments depending on the extent of acceptance. The settlement is conditioned on issuers of at least 90% of the claimed-on MasterCard accounts accepting their alternative recovery offers by May 2, 2008. The estimated costs of this settlement are already reflected in the reserve related to the computer intrusion(s) that TJX established during fiscal 2008.
Carol Meyrowitz, President and Chief Executive Officer of The TJX Companies, Inc., stated, “We believe this Settlement Agreement provides a fair resolution for MasterCard and its issuing banks and look forward to a high level of issuer acceptance. Providing a secure shopping environment for our customers remains a priority for TJX. Beyond the many millions of dollars we have spent to add significant security to our computer system, we are installing security measures which exceed those of many other retailers and current industry requirements.”
Accepting issuers will release and indemnify TJX and its acquiring banks with respect to claims of such issuers, their affiliated issuers, and their sponsored issuers as MasterCard issuers with respect to the intrusion(s), including any claims in putative class actions in federal and Massachusetts state courts.
The TJX Companies, Inc. is the leading off-price retailer of apparel and home fashions in the U.S. and worldwide. The Company operates 848 T.J. Maxx, 776 Marshalls, 291 HomeGoods, and 129 A.J. Wright stores, as well as 34 Bob’s Stores, in the United States. In Canada, the Company operates 191 Winners and 71 HomeSense stores, and in Europe, 226 T.K. Maxx stores. TJX’s press releases and financial information are also available on the Internet at www.tjx.com.
SAFE HARBOR STATEMENTS UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT 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 are forward-looking statements. The following are some of the factors that could cause actual results to differ materially from the forward-looking statements: matters relating to the computer intrusion(s) including completion of the MasterCard settlement, potential losses that could exceed our reserve, potential effects on our reputation and sales and other consequences 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; risks inherent in foreign operations; our ability to successfully implement our opportunistic buying strategies and to manage our inventories effectively; successful advertising and promotion; consumer confidence, demand, spending habits and buying preferences; effects of unseasonable weather; competitive factors; availability of store and distribution center locations on suitable terms; our ability to recruit and retain 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 our share repurchase program; availability and cost of financing; general economic conditions, including fluctuations in the price of oil; potential disruptions due to wars, natural disasters and other events beyond our control; changes in currency and exchange rates; issues with merchandise quality and safety; import risks; adverse outcomes for any significant litigation; compliance with and changes in laws and regulations and accounting rules and principles; adequacy of reserves; closing adjustments; failure to meet market expectations; 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.