Elon Musk Seeks Dismissal of $1M-a-Day Giveaway Lawsuit

Elon Musk has urged a federal judge to dismiss a class-action lawsuit accusing him of running an illegal lottery tied to his $1 million-per-day election giveaway. The lawsuit, filed by Arizona resident Jacqueline McAferty on November 5, 2024, alleges the initiative violated Texas law and misled participants into believing winners were selected randomly.

The giveaway, part of Musk's support for Donald Trump’s 2024 presidential campaign, awarded $1 million daily to registered voters in swing states who signed a petition backing the U.S. Constitution. The suit claims the promotion was deceptive and seeks $5 million in damages for petition signers, arguing it constituted an illegal inducement.

Musk and his political action committee, America PAC, denied the allegations. Musk argued that participants were fully informed their involvement was tied to opportunities as spokespeople for the PAC, not random selection. He also rejected claims that providing personal information caused harm.

The legal debate hinges on whether the initiative represents a legitimate promotional activity or an unlawful lottery. Critics assert the campaign exploited participants, while Musk maintains it was a transparent and lawful effort to engage voters.

This high-profile case adds to the scrutiny Musk faces over his political and business ventures. If the lawsuit proceeds, it could set a precedent for promotional campaigns tied to political initiatives, potentially affecting how such activities are regulated in the future.

Musk's legal team remains confident in their defense, emphasizing the transparency of the campaign and its alignment with promotional norms. The court's decision will be closely watched for its broader implications on political fundraising and voter engagement efforts.