Banks sue TK Maxx parent company

American retailer TK Maxx is being sued by some 300 banks that lost money because of the company's recent security breach.

In January, the shop's parent company TJX announced that up to 45 million people across the world could be open to identity theft and fraud after hackers stole their data from a computer system dealing with credit and debit card transactions.

TJX owns TK Maxx stores in the UK as well as TJ Maxx stores in the USA. US customers of the companies were affected. However, although details of UK customers are believed to have been compromised, it is not known if these have been used illegally.

The company is now being sued in the American courts by three banking associations, led by the Massachusetts Bankers Association. Between them, the three account for over 300 banks that want to recover costs and damages amounting to tens of millions of dollars relating to the issue of compromised cards.

Last month, a shareholder of the company began litigation in an attempt to access confidential TJX documents, a move that could lead to a claim for damages. The action by the banks will claim that TJX unfairly claimed it would protect sensitive customer data.

Jonathan Armstrong of law firm Eversheds said: "The new proceedings will be a worry for organisations on both sides of the Atlantic. Too often companies make marketing claims which are likely to expose them to proceedings like this: for example, claiming that their websites are '100 per cent secure'."