Yes and no.
Kathy was originally killed by Bronze Tiger so he could get into the League of Assassins. Then Morrison revived the character and introduced her as Kathy Webb-Kane, Bruce's aunt by marriage. She had staged that murder, and led a group called Spyral as its Headmistress. This was mostly in Batman Incorporated.
But in Grayson's title, the role is filled by someone named "Katrina Netz", obviously a standin. So what the status of KJathy Kane is at the moment is unknown.