By Jaikumar Vijayan
May 10, 2010
The costs to Heartland Payment Systems Inc. from the massive data breach
that it disclosed in January 2009 appear to be steadily adding up.
Quarterly financial results released by Heartland last week show that
the card payment processor has accrued $139.4 million in breach-related
expenses. The figure includes a settlement totaling nearly $60 million
with Visa, another of about $3.5 million with American Express and more
than $26 million in legal fees.
That total also includes $42.8 million that Heartland has set aside to
fund proposed settlements with several other litigants over the breach.
One example of what the fund is set up for is Heartland's offer to
settle several consumer class action lawsuits against it for $4 million.
So far, Heartland has recovered about $30 million from insurance
companies. Even with the updated figures, Heartland so far has spent
considerably less than the staggering $250 million that TJX Companies
Inc. estimated it would eventually spend to address its massive 2006
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