A federal judge on Wednesday ruled that Elon Musk must face a lawsuit filed by voters alleging that the billionaire defrauded them into signing a petition in exchange for a chance to win his $1 million-a-day giveaway.
What Are The Allegations Against Elon Musk and America PAC?
US District Judge Robert Pitman, presiding in Austin, Texas, said Jacqueline McAferty “plausibly alleged” in her proposed class action that Musk and his political action committee, America PAC, improperly induced her to provide personal identifying information as part of the giveaway late in the 2024 election campaign.
Musk founded America PAC to support Republican Donald Trump’s successful 2024 presidential run. McAferty, an Arizona resident, claims that voters in seven battleground states were lured to sign his petition with the promise that recipients of the $1 million would be selected randomly, similar to a lottery, even though the voters allegedly had no real chance to collect the prize.
Voters who signed the petition were reportedly required to provide their names, addresses, email addresses, and phone numbers.
Elon Musk’s Defense and Judge’s Response
Musk in January cited several “red flags” to argue that he did not run an illegal lottery. He stated that recipients were “selected to earn” the money and were expected to become America PAC spokespeople, which, he argued, contradicted the notion that the payment was a “prize.”
However, Judge Pitman noted statements suggesting the defendants were “awarding” the $1 million and that the money could be “won.”
He wrote, “it is plausible that plaintiff justifiably relied on those statements to believe that defendants were objectively offering her the chance to enter a random lottery – even if that is not what they subjectively intended to do.”
Elon Musk on Potential Harm and Expert Testimony
Musk also contended that petition signers suffered no harm by providing their contact information. Pitman countered that an expert in political data brokerage could testify regarding the value of such information, particularly for voters in battleground states.
The lawsuit was filed on Election Day, November 5, 2024. A day earlier, a Philadelphia judge had declined to halt Musk’s giveaway, ruling that the city’s top prosecutor had not proven it was an illegal lottery.
Musk resides in Texas, where his electric car company, Tesla, is headquartered in Austin.
The case is formally titled McAferty v. Musk et al, US District Court, Western District of Texas, No. 24-01346.
Also Read: Elon Musk Halts Launch of America Party, May Back JD Vance in 2028 – Does Trump Have a Role in It?
Zubair Amin is a Senior Journalist at NewsX with over seven years of experience in reporting and editorial work. He has written for leading national and international publications, including Foreign Policy Magazine, Al Jazeera, The Economic Times, The Indian Express, The Wire, Article 14, Mongabay, News9, among others. His primary focus is on international affairs, with a strong interest in US politics and policy. He also writes on West Asia, Indian polity, and constitutional issues. Zubair tweets at zubaiyr.amin