Red Cross Class Action: Haiti Earthquake Relief Funds Misused, Lawsuit Claims

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.

Did the Red Cross Mislead Donors and Fail the People of Haiti?

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.

Lawsuit Alleges Fraudulent Fundraising and Mismanagement of Donations

The lawsuit points to several examples of the Red Cross’s alleged mismanagement of the Haiti relief funds:

• Failure to build promised housing. Despite raising nearly $1 billion for housing projects, the Red Cross reportedly built only six homes, while other organizations built thousands.
  
  
• Abandoned infrastructure projects. A $30 million project to build roads and infrastructure was delayed for years and eventually abandoned due to land disputes.
  
  
• Ineffective aid programs. Many Red Cross initiatives, such as sanitation and water access projects, failed to deliver tangible benefits to Haitian communities.
  
  
• Misleading reports and communications. The Red Cross allegedly issued misleading reports and communications falsely claiming that the funds were used to build hospitals and rebuild homes in Haiti.
• Lack of transparency. The Red Cross has allegedly failed to provide a transparent accounting of how the donated funds were spent.

Claims of Fraudulent Misrepresentation and Concealment

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.

Plaintiffs Seek Accounting and Damages for Red Cross's Alleged Misconduct

The lawsuit is brought on behalf of two classes:

• The Class of Beneficiaries. This class comprises at least 2 million individuals residing in Haiti and the United States who were personally victimized by the earthquakes in Haiti, including those who lost property or loved ones and were intended recipients of the over $500 million raised by the Red Cross.
  
  
• The Class of Donors. This class consists of thousands of individuals in the United States and worldwide who donated over $500 million to the Red Cross from 2010 to 2024 specifically to aid earthquake victims in Haiti.

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

• Lawsuit: HDPAC et al v. The American Red Cross et al.
• Case Number: 1:24-cv-24617
• Court: U.S. District Court for the Southern District of Florida, Miami Division

Plaintiffs' Attorneys

• Wil Morris (Morris Legal PC)

Did you donate to the Red Cross for Haiti earthquake relief? Share your thoughts on this lawsuit in the comments below.