NEW YORK—A close friend of Philip Seymour Hoffman has settled a libel lawsuit against The National Enquirer by creating a playwriting foundation to be initially funded by the tabloid.

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.


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