One of the two friends who discovered
David Bar Katz has come to an agreement with the Enquirer over a story that falsely claimed he and Hoffman were gay lovers who had free-based cocaine the night before the actor died.
Katz, a playwright, told the New York Times he will use the settlement to set up the American Playwriting Foundation, which will give out an annual prize of $45,000 for an unproduced play. It will be called the Relentless Award, in Hoffman's honor.
Katz said he first heard of the Enquirer story from one of his sons. "My 14-year-old said, 'Dad, there's something online about you and Phil being lovers," Katz said. "I said, 'Phil would get a kick out of that.' "