A new prize for playwrights is being established in memory of the late actor Philip Seymour Hoffman.

And it’s being funded by the scandal sheet “The National Enquirer.” But not by choice.

It’s the idea of playwright David Katz, a friend of Hoffman’s. He sued the Equirer after it published a story in which it claimed Katz had said he and Hoffman had taken drugs together.

Katz denies ever doing drugs with Hoffman, or seeing the Oscar-winner do drugs. Hoffman died of a heroin overdose three weeks ago.

The Enquirer has now admitted it accepted the information from someone claiming to be David Katz. It has settled the suit and will publish a full-page apology in the New York Times.

Katz will use the settlement to establish an annual bursary of $45,000 for a promising playwright whose work has not been produced.