Red Cross class action alleges organization used some Haiti donations for personal gain, overhead

Red Cross Haiti donations class action overview:

• Who: The Haitian Diaspora Political Action Committee and others sued the Red Cross and its affiliates. 
• Why: The plaintiffs say natural disaster victims in Haiti did not receive the Red Cross Haiti donations the nonprofit owed them.
• Where: The Red Cross class action was filed in a Florida federal court.

A new class action lawsuit alleges the American Red Cross raised more than $500 million in donations for Haiti earthquake relief between 2010 and 2024 but misused significant portions of the funds, leaving the intended beneficiaries in dire conditions.

The Haitian Diaspora Political Action Committee and others sued the Red Cross and its affiliates Nov. 25 in a Florida federal court alleging fraud, breach of implied contract, embezzlement, unjust enrichment and infliction of emotional distress.

The lawsuit claims the organization exploited the 2010 earthquake and subsequent disasters to solicit donations, promising to rebuild infrastructure and provide essential aid. 

However, instead of fulfilling these commitments, the plaintiffs allege the Red Cross diverted funds for “exorbitant, unjustified salaries” and other administrative expenses.

Red Cross Haiti donations lawsuit alleges fraud, deception

The 2010 earthquake, which claimed an estimated 300,000 lives and displaced hundreds of thousands of people, triggered a global outpouring of donations, the lawsuit states. According to the plaintiffs, the Red Cross raised millions in the weeks following the disaster, using graphic imagery of destruction and suffering to appeal to donors. 

However the plaintiffs argue the organization never completed promised projects, including homes, schools and hospitals.

The lawsuit also addresses disasters in 2016, 2018, 2021 and 2023, accusing the Red Cross of repeating the pattern of soliciting funds under false pretenses while failing to deliver meaningful assistance.

The plaintiffs look to represent at least 2 million Haitian and American citizens harmed by earthquakes and other natural disasters in Haiti after the 2010 earthquake and through 2023 who did not receive Red Cross donations, as well as those who donated.

The plaintiffs demand accounting of the $500 million raised and seek damages of more than $1 billion for alleged misuse of funds.

“Fourteen years after the devastating 2010 earthquake, the people of Haiti are still awaiting meaningful assistance… and a full accounting of the funds collected,” the lawsuit states.

Meanwhile, in 2020, a class action lawsuit against the United States Conference of Catholic Bishops claimed “Peter’s Pence” donations meant for the poor were actually being used for investments in things such as real estate and Hollywood films.

What do you think of the allegations in this Red Cross class action? Let us know in the comments.

The plaintiffs are represented by Wil Morris of Morris Legal PC.

The Red Cross class action lawsuit is The Haitian Diaspora Political Action Committee et al. v. The American Red Cross et al., Case No. 1:24-cv-24617-XXXX in the U.S. District Court for the Southern District of Florida. 

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