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Case Overview: A class action lawsuit claims the Red Cross misused hundreds of millions of dollars in donations intended for Haiti earthquake relief efforts.
Consumers Affected: Haitian earthquake victims and donors who contributed to the Red Cross's Haiti relief efforts.
Court: U.S. District Court for the Southern District of Florida, Miami Division
The American Red Cross is facing a class action lawsuit alleging that it misused hundreds of millions of dollars in donations intended for earthquake relief efforts in Haiti.
Filed Monday, November 25th, on behalf of Haitian earthquake victims and donors who contributed to the Red Cross’s Haiti relief efforts, the lawsuit claims the organization misappropriated funds, leaving the intended beneficiaries in Haiti to endure hardship while Red Cross executives profited.
The lawsuit alleges that the Red Cross leveraged the catastrophic 2010 Haiti earthquake and subsequent earthquakes and natural disasters in 2016, 2018, 2021, and 2023 to raise over $500 million in donations.
However, instead of using these funds for their intended purpose – rebuilding homes, schools, and hospitals, repairing infrastructure, and providing essential aid such as food, water, and medical care – the lawsuit claims that the Red Cross diverted a significant portion of the money for personal gain and administrative overhead.
The lawsuit accuses the Red Cross of engaging in a 14-year pattern of fraudulent fundraising and misusing donations. It claims that the organization exploited the suffering of the Haitian people to solicit donations, making promises that were not fulfilled.
It is alleged that the Red Cross misused the donated funds to pay exorbitant salaries to its executives, enabling them to live extravagant lifestyles while the intended beneficiaries of the donations continued to suffer. It is also alleged that the Red Cross diverted funds to cover its own financial deficit and for projects unrelated to Haiti.
The lawsuit points to several examples of the Red Cross’s alleged mismanagement of the Haiti relief funds:
The lawsuit asserts that the Red Cross engaged in fraudulent misrepresentation and concealment, misleading donors about how their contributions would be used. It claims that the organization made false statements about its plans to use the funds for earthquake relief and recovery efforts in Haiti, while actually diverting a significant portion of the money for other purposes.
Furthermore, the lawsuit alleges that the Red Cross concealed its mismanagement of the funds and its failure to fulfill its promises to donors and the Haitian people. This concealment, the plaintiffs argue, allowed the Red Cross to continue soliciting donations under false pretenses and perpetuate its fraudulent scheme.
The lawsuit is brought on behalf of two classes:
The named plaintiffs include individuals who donated money to the Red Cross, individuals who were victims of the earthquakes in Haiti, and the Haitian Diaspora Political Action Committee (HDPAC), which represents the interests of Haitian Americans who donated to the Red Cross.
The plaintiffs are requesting a full accounting of how the donated funds were used, along with damages for the harm caused by the alleged mismanagement. They argue that the Red Cross’s actions deprived Haitian communities of much-needed aid and misled donors who trusted their contributions would help those in need.
Case Details
Plaintiffs' Attorneys
Did you donate to the Red Cross for Haiti earthquake relief? Share your thoughts on this lawsuit in the comments below.
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