David Katz settles libel lawsuit against National Enquirer, establishes playwriting foundation in name of friend Phillip Seymour Hoffman

Friends of the late Philip Hoffman recently came together to settle a libel lawsuit against the National Enquirer by creating a playwriting foundation that is to be initially funded by the tabloid.

On Wednesday, the National Enquirer said in a one-page ad in The New York Times that it "responsibly acknowledged its error" pertaining to a story that purported to be an exclusive interview with David Bar Katz, a playwright who discovered Hoffman's body in his apartment.

Hoffman died Feb. 2 of an apparent heroin overdose. At the time of the tragedy, the National Enquirer published an article that quoted Katz as saying that he and Hoffman were lovers and that Katz had seen Hoffman use heroin many times in the past.

The tabloid has since apologized to Katz, who sued, saying he'd never spoken with the tabloid.

According to the Times, the ad was part of the agreement and the American Playwriting Foundation will award $45,000 yearly for an unproduced play that embodies Hoffman's passion for truth.

Katz told the Times that his oldest son was the one to first mention the article to him.

"My 14-year-old said, 'Dad, there's something online about you and Phil being lovers,' " Katz said.

The sum of money being paid by The Enquirer was not disclosed, but according to Katz's lawyer, Judd Burstein, "It's enough for the foundation to give out these grants for years to come."