US Judge Allows Lawsuit Against Elon Musk Over $1 Million Giveaway Scheme

A US federal judge directed Tesla and SpaceX chief Elon Musk to face a lawsuit brought by voters who say he misled them into signing a petition in exchange for a chance to win his $1 million-a-day giveaway.

According to the complaint, winners had already been pre-selected, even though Musk promoted the campaign as a lottery-style contest.

US District Judge Robert Pitman in Austin, Texas, ruled in favour of Jacqueline McAferty’s claim. The Arizona voter had presented a credible case in her proposed class-action suit against Musk and his political action committee, America PAC.

McAferty further claimed that America PAC unlawfully obtained her personal details during the giveaway in the final stages of the 2024 election campaign.

She alleged that Musk and America PAC lured voters in seven battleground states to sign a petition. They did so by promising that randomly chosen participants would win $1 million.

To participate, voters were asked to provide names, addresses, phone numbers and email IDs.

Silence From Musk’s Legal Team

Reports said Musk’s lawyers and America PAC have not commented on the ruling.

Elon Musk created America PAC to support Republican candidate Donald Trump’s 2024 presidential run.

Musk argued during the hearing that the campaign clearly stated $1 million recipients were ‘selected to earn’ the money. He added that recipients were expected to serve as PAC spokespeople, which proved that it was not a lottery.

He asked for the case to be dismissed, saying no illegal scheme was involved.

However, Judge Pitman noted that other PAC statements described the money as something to be ‘awarded’ or ‘won’. He wrote that McAferty could reasonably have believed she was entering a lottery, regardless of PAC’s actual intent.

Musk also dismissed the idea that voters were harmed by sharing their personal details. But the judge said an expert in political data brokerage could testify to the value of such information, especially in swing states.

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