A class action lawsuit filed on Nov. 25 against the American Red Cross alleges that the organization misused more than $500 million raised for Haiti earthquake relief between 2010 and 2024.
The lawsuit, filed in federal court in the Southern District of Florida, accuses the Red Cross of exploiting the catastrophic 2010 earthquake in Haiti, as well as subsequent disasters in 2016, 2018, 2021, and 2023, to raise funds under false pretenses.
The plaintiffs claim that significant portions of the funds were used for personal gain, administrative overhead, expatriate salaries, and projects unrelated to Haiti, leaving the intended beneficiaries without the promised assistance. They allege that while the organization raised substantial donations by showcasing images of suffering Haitians, it failed to deliver on promises to rebuild homes, schools, and hospitals, and to provide essential services such as clean water and medical care.
“The Defendants misused the funds to pay exorbitant, unjustified salaries to their CEOs and executives, enabling them to live extravagant lifestyles while the intended beneficiaries of the donations suffered from hunger, poverty, and disease,” the lawsuit states.
The action was filed on behalf of two groups. The first is the beneficiary class, which includes at least 2 million people in Haiti and the United States who were directly affected by the Haiti disasters, including those who lost property or loved ones and were intended to benefit from the more than $500 million raised by the organization. The second, the donor class, is made up of thousands of people from the United States and around the world who contributed more than $500 million to the defendants, according to court documents.
The lawsuit seeks monetary damages ranging from $500 million to $1 billion, alleging fraud, unjust enrichment, conversion, theft, embezzlement, and other charges against the Red Cross.
“There is no merit to the Office of the Haitian Diaspora and the Haitian Diaspora Political Action Committee lawsuit regarding American Red Cross relief and recovery efforts in Haiti,” the Red Cross told The Epoch Times in a statement.
“Our long-term recovery program engaged more than 50 partners over 10 years to reach 4.5 million Haitians with a diverse range of interventions from housing and community reconstruction to economic recovery assistance to cholera prevention and treatment.”
“Money donated for Haiti earthquake relief went into a restricted account that could only be used for programs and services for Haiti. Designated funds are never used for operational deficits or payment of debt,” the Red Cross stated.
The organization said that it is proud of its “response and recovery efforts following the earthquake in Haiti as [it] navigated the unique and complex realities on the ground.”
