Elon Musk Faces Lawsuit Over 1 Million USD Election Giveaway Controversy

A federal judge has ruled that Elon Musk, the billionaire entrepreneur, must face a lawsuit accusing him of misleading voters with a $1 million-a-day giveaway linked to his America PAC during the 2024 U.S. presidential election.

The decision, made by U.S. District Judge Robert Pitman in Austin, Texas, allows the case brought by Arizona resident Jacqueline McAferty to move forward. She claims Musk and his political group tricked people into sharing personal information with false promises of a big cash prize.

The lawsuit, filed as a class-action on Election Day 2024, alleges that Musk’s America PAC offered a $1 million daily prize to people in seven key swing states who signed a petition supporting the U.S. Constitution.

• Judge Rules Elon Musk Must Face Lawsuit Over $1 Million-a-Day Election Giveaway
• Elon Musk’s America PAC Accused of Misleading Voters With Cash Prize Contest
• Federal Court Allows Class-Action Suit Against Musk Over 2024 Election Data Giveaway

To enter, participants had to provide their names, addresses, emails, and phone numbers. McAferty argues that the giveaway was a sham, with no real chance of winning, and was designed to collect valuable voter data. The lawsuit demands at least $5 million in damages for everyone who signed the petition.

Musk, who created America PAC to back Donald Trump’s winning 2024 campaign, tried to get the case thrown out. He argued the giveaway wasn’t an illegal lottery because winners were chosen to act as paid spokespeople for the PAC, not random prize recipients. But Judge Pitman, appointed by President Obama in 2014, pointed to Musk’s own words suggesting people could “win” the money, which could have led voters to think they were entering a legitimate contest. Pitman also dismissed Musk’s claim that sharing personal info caused no harm, noting that experts could prove the data’s value in competitive election states.

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This ruling comes after a Philadelphia judge on November 4, 2024, refused to stop Musk’s giveaway, as the city’s prosecutor couldn’t prove it broke lottery laws. Musk, the Tesla CEO and a Texas resident, hasn’t commented on the latest decision, and America PAC’s lawyers have also stayed silent.