Elon Musk Faces Lawsuit Over $1 Million Election Giveaway

Photo : AP

Elon Musk is facing a proposed class action lawsuit filed by registered voters who participated in his $1 million-a-day election giveaway, claiming the entire promotion was fraudulent. The lawsuit, filed on Tuesday by Arizona resident Jacqueline McAferty in the U.S. District Court for the Western District of Texas, accuses Musk and his America PAC organization of misleading voters by falsely claiming that winners would be chosen randomly, when in fact the winners had already been predetermined.

According to the complaint, Musk and America PAC induced voters to sign a petition in support of the Constitution under the false pretense that they could win $1 million a day. McAferty alleges that the giveaway was a deceptive scheme designed not only to manipulate voters but also to benefit Musk and his platform, X (formerly Twitter), by driving traffic and collecting personal information such as names, addresses, and phone numbers. This information, McAferty claims, could then be sold to third parties.

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The lawsuit comes just one day after a ruling by a Philadelphia judge, who rejected an attempt by the city's district attorney, Larry Krasner, to halt the giveaway. Krasner had called the promotion an illegal lottery, though the judge's decision was largely symbolic since Musk had already stated he would not be distributing any more funds following the U.S. presidential election.

Musk's giveaway targeted voters in seven key battleground states, offering them a chance to win $1 million daily if they signed a petition in support of free speech and gun rights. However, the lawsuit now seeks at least $5 million in damages for all individuals who signed up, alleging that the promotion was nothing more than a deceptive marketing tactic.

Musk, a Texas resident, has used his platform to support Republican presidential candidate Donald Trump in the 2024 race against Democratic Vice President Kamala Harris. Tesla, Musk’s electric car company, is headquartered in Austin, Texas, where he resides.

The case, McAferty v Musk et al, is ongoing in the U.S. District Court for the Western District of Texas, with the case number 24-01346. Both Musk’s legal team and the attorneys representing McAferty have not yet responded to inquiries about the complaint.