In a one-page ad Wednesday in The New York Times, The Enquirer said it "responsibly acknowledged its error" for a story that purported to be an exclusive interview with David Bar Katz. The Enquirer also apologized to Katz, a playwright who discovered Hoffman's body.
The actor died of an apparent heroin overdose Feb. 2.
The Times ( http://nyti.ms/1frmpjz) reported on the settlement and said the ad was part of the agreement.
The American Playwriting Foundation will award $45,000 yearly for an unproduced play that embodies Hoffman's "passion for truth." Katz's lawyer told the Times the amount won't be disclosed.