Musk Sued by Philly DA Over $1M Election Giveaway

Philadelphia’s District Attorney Larry Krasner has filed a lawsuit against billionaire Elon Musk and a pro-Trump political action committee (PAC) over the group’s controversial $1 million daily cash giveaways to voters in swing states. The legal action, filed Monday in state court, marks the first lawsuit against the PAC, called America PAC, and targets Musk’s involvement amid increasing scrutiny of the sweepstakes. Krasner, a progressive Democrat, argues that the giveaway constitutes an illegal lottery designed to influence the outcome of the general election. According to the lawsuit, the PAC offers $1 million daily to randomly selected voters from swing states, provided they sign a petition on the PAC’s website. The petition is presented as a show of support for the First and Second Amendments, but only registered voters in swing states are eligible to participate in the giveaway. Nearly half of the winners to date have been from Pennsylvania, according to The Philadelphia Inquirer.

The lawsuit demands that the giveaway be halted immediately, claiming, “America PAC and Musk hatched their illegal lottery scheme to influence voters.” Krasner’s filing underscores that the giveaway could compromise the integrity of the electoral process by incentivizing voter behavior through financial rewards. The legal challenge follows earlier warnings from the U.S. Department of Justice (DOJ), which issued a letter to America PAC suggesting the sweepstakes could violate federal election law. Under federal law, it is illegal to offer payment in exchange for registering to vote or casting a vote. Legal experts have raised concerns that the structure of the giveaway crosses this line, as only registered voters are eligible for the cash prizes.

In addition to federal concerns, Krasner asserts that the giveaway violates Pennsylvania state laws prohibiting unauthorized lotteries. The district attorney’s office also claims the sweepstakes breaches consumer protection laws by using misleading or vague language that could confuse participants. “This is a lottery, and it is indisputably an unlawful lottery,” the lawsuit reads. It accuses the PAC of exploiting citizens’ personal information and political pledges under the pretext of a cash giveaway. While Musk has not yet commented on the lawsuit, America PAC responded by highlighting its latest $1 million winner through a tweet, signaling that the group intends to continue the giveaway despite the DOJ’s warning. A hearing for the lawsuit is scheduled for Friday, according to court records.

If the giveaway is found to be in violation of federal law, Musk and America PAC could face significant penalties. Federal law prohibits incentivizing voter registration or participation, with violators facing fines of up to $10,000 and/or up to five years in prison. Although the Philadelphia lawsuit is a civil action intended to stop the sweepstakes, Krasner’s office hinted that the case could pave the way for potential criminal charges in the future. In defending the giveaway, Musk has argued that the petition is not directly tied to voting or voter registration. During recent campaign events, Musk reportedly downplayed the legal concerns, claiming that signing the petition was a “no-brainer” and insisting it was merely a way for voters to show their support for constitutional rights. However, critics note that the giveaway’s eligibility criteria—limited to registered voters in swing states—suggest a clear intent to influence the election process.

Musk’s involvement with America PAC represents a significant shift in his political stance. Previously known for supporting Democratic candidates, the Tesla CEO has emerged as a key ally of Donald Trump in the 2024 presidential election. Musk not only funds the PAC but has also appeared at Trump campaign rallies and voiced his support on social media platforms. According to federal filings, Musk has donated $118.6 million to America PAC, accounting for the majority of the PAC’s $130.3 million in total fundraising as of mid-October. Musk’s financial backing aligns with his vested interest in a Trump victory. Trump has publicly hinted at appointing Musk to a potential new government role as “secretary of cost-cutting” if elected. Musk has also pushed for the creation of an “office of government efficiency,” a policy initiative that could align with his business interests. Additionally, companies linked to Musk, such as Tesla and SpaceX, stand to benefit from Trump’s proposed economic policies.

America PAC has taken on a prominent role in Trump’s campaign strategy, overseeing much of the ground game operations. However, reports suggest the PAC has faced technical difficulties, with issues arising around canvassing data. Some volunteers reportedly logged false information, claiming they had visited homes when no such visits took place. The $1 million giveaways began in late October, following a smaller effort in which America PAC offered $47 to individuals for collecting signatures from swing state voters. The initiative has sparked backlash, with critics accusing the PAC of buying political support. The lawsuit suggests that the sweepstakes lure participants into surrendering personal information and making political pledges, blurring the lines between political engagement and financial inducement.

With the DOJ already scrutinizing the sweepstakes and now facing legal action in Pennsylvania, Musk and America PAC are under intense pressure. The PAC’s decision to proceed with the giveaways despite legal warnings raises questions about the long-term implications for both Musk and the campaign. It remains unclear what penalties Musk or America PAC may face if the court rules against the giveaway. While the Philadelphia lawsuit focuses on stopping the cash prizes, the district attorney’s office has left the door open for potential criminal investigations. The outcome of the lawsuit could set a precedent for how future political fundraising and voter engagement campaigns are regulated.

As the legal battle unfolds, Musk’s net worth continues to soar. As of Monday morning, his fortune stood at $274.7 billion, solidifying his status as the world’s richest person. Whether his wealth and influence will shield him from the growing legal challenges surrounding the PAC’s sweepstakes remains to be seen. For now, the spotlight is on Friday’s hearing, where a judge will determine the immediate future of the $1 million giveaways. If the court sides with Krasner, the ruling could disrupt not only America PAC’s operations but also the broader Trump campaign strategy, which has leaned heavily on the PAC’s efforts to mobilize swing state voters.