Insurance Company Reimburses TJX Almost $19 Million For Data Breach

In the middle of a better-than-expected earnings report from TJX on Wednesday, the retailer whose databreach of 100 million cards was the worst in credit card history reported that it was paid somewhat less than $19 million by its insurance company.

Referring to $178 million the chain had set aside to deal with data-breach-related costs, TJX said that on Jan. 26, 2008, "TJX reduced the reserve by $19 million, primarily due to insurance proceeds with respect to the computer intrusion, which had not previously been reflected in the reserve, as well as a reduction in estimated legal and other fees as the Company has continued to resolve outstanding disputes, litigation and investigations."

TJX has disposed of most of its databreach lawsuits—from both consumer and banking groups—with one state civil lawsuit pending, along with the state Attorney General and some federal probes still waiting in the wings. The retailer also presumably will spend more time—translating into more money—working with law enforcement trying to nab the cyberthieves involved.

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