A growing problem…

June 12, 2007

images-12.jpegAt the top of TJMax’s website is an important “customer alert” — a letter from TJX Co. (TJX) President and CEO Carol Meyrowitz expressing the company’s concern over the security breach regarding ATM cards at various stores owned by TJX, including TJMaxx, Marshall’s and Bob’s Stores.

The letter may be dated Feb. 21. But that hasn’t exactly stopped the flood of lawsuits. Indeed, in the Q that the company filed last week, the company noted that 10 additional lawsuits had been filed against the company for the security breach since the start of the first quarter. That’s in addition to the 19 similar lawsuits the company disclosed in the 10-K it filed at the end of March.

While Meyrowitz’ letter says that the company has been working fast and furiously on solving the “security breach”, which is international in scope, there’s clearly a lot of attorneys who are also focused on this issue, judging by the pace of the lawsuits. Either way, this is going to be expensive for TJX — not just in money, but also in the amount of time it winds up diverting top executives from being able to execute on their business.

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