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Elon Musk says $1 million election giveaway wasn’t an illegal lottery

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January 27, 2025
in Investing
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Elon Musk says $1 million election giveaway wasn’t an illegal lottery

By Jonathan Stempel

(Reuters) – Elon Musk asked a federal judge to dismiss a proposed class action by voters who said the world’s richest person defrauded them into signing a petition to support the U.S. Constitution for a chance to win his $1 million-a-day giveaway.

In a late Friday filing in the Austin, Texas federal court, Musk rejected the claim the giveaway was an illegal “lottery” that violated a Texas law against deceptive trade practices.

Arizona resident Jacqueline McAferty claimed that Musk and his political action committee America PAC falsely induced voters in seven battleground states to sign the petition by promising that winners would be chosen randomly.

Musk founded America PAC to support Republican Donald Trump’s successful 2024 presidential run.

According to Musk, however, voters were told they would be reviewed for an opportunity to earn the $1 million by becoming America PAC spokespeople.

This, Musk said, defeated any notion that the money was a “prize” to be won.

“Make no mistake: an eligible voter’s opportunity to earn is not the same thing as a chance to win,” Musk said.

Chance, he added, “was not involved here.”

Musk also rejected the suggestion that petition signers suffered harm by providing their names, addresses and phone numbers, which they said Musk and America PAC could then sell.

Lawyers for the proposed class did not immediately respond to requests for comment on Sunday.

The lawsuit was filed on Election Day, Nov. 5, 2024.

A day earlier, a Philadelphia judge refused to end Musk’s giveaway, saying that city’s top prosecutor also failed to show it was an illegal lottery.

McAferty’s lawsuit seeks at least $5 million in damages for everyone who signed the petition.

Musk is a Texas resident and his electric car company Tesla (NASDAQ:TSLA) is based in Austin.

The case is McAferty v Musk et al, U.S. District Court, Western District of Texas, No. 24-01346.

This post appeared first on investing.com
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