Fergie's Tech Blog

Insurance Company Reimburses TJX Almost $19 Million For Data Breach

Evan Schuman writes on StorefrontBacktalk:

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."

posted by Fergie @ 2/21/2008 11:03:00 PM