Musk’s PAC Keeps $1 Million Giveaways Amid Legal Pause

Elon Musk’s super PAC, America PAC, is set to continue its $1 million giveaways to voters in key swing states following a ruling from a Philadelphia judge who paused a pending lawsuit aimed at blocking the controversial initiative. This development occurred on Thursday, as the judge deferred the case while Musk seeks to transfer the matter to federal court. Legal experts suggest that the ongoing litigation may not be resolved before the critical Election Day, allowing the giveaways to persist unimpeded.

The lawsuit was initiated by Philadelphia District Attorney Larry Krasner, who argues that the PAC’s daily $1 million draws violate Pennsylvania’s lottery laws, which mandate that such lotteries must be state-administered. Krasner’s complaint also cites consumer protection issues, contending that America PAC has failed to maintain transparency regarding the contest’s rules, the selection process for winners, and the handling of supporters’ personal information.

In response, Musk’s legal team filed a motion late Wednesday to shift the case to federal jurisdiction, claiming that while Krasner’s assertions revolve around state law, the lawsuit fundamentally addresses federal issues. Musk’s attorneys argue that the real focus of the suit is on preventing the alleged “interference” with the upcoming federal presidential election.

During Thursday’s hearing, Judge Angelo Foglietta ruled to suspend proceedings while the federal court considers whether to accept the case. As a result, America PAC’s giveaways are free to continue during this interim period, which some analysts believe significantly decreases the likelihood that the sweepstakes will be halted before the elections.

The Philadelphia District Attorney’s office chose not to comment further on the case beyond its initial announcement of the lawsuit. However, the city opposed Musk’s attempt to transfer the case to federal court. DA office attorney John Summers criticized Musk’s maneuver as both “cowardly” and “irresponsible,” asserting that the lawsuit primarily concerns state law.

At this time, it remains unclear how long the federal court will take to decide whether to assume jurisdiction over the case. As of Thursday morning, no hearing had been scheduled.

Interestingly, Musk did not attend the hearing. Despite a prior order requiring all involved parties to appear, Krasner requested an exemption for Musk due to scheduling conflicts. The hearing was moved up from its original Friday slot on short notice, prompting Musk’s attorney, Matt Haverstick, to explain that the billionaire’s commitments precluded his attendance with only a 12-hour notice. Judge Foglietta appeared to sympathize with Musk’s situation, noting that he wouldn’t expect Musk to “get on a rocket ship and land in Philadelphia.”

The hearing’s schedule change was influenced by Krasner’s concerns for security, stemming from Musk’s criticism of the lawsuit on social media. Musk claimed that Krasner knew the giveaways were legal but sought to have a “leftist judge” intervene to halt them before Election Day. This social media discourse led to Musk’s supporters allegedly launching a barrage of attacks against Krasner, including antisemitic remarks and threats that raised concerns about political violence. Krasner referenced a specific instance where an online user posted his home address and urged others to visit him, warning that these threats were “unquestionably criminal.”

Moreover, the Justice Department has expressed concerns about the legality of Musk’s PAC’s $1 million giveaways. According to reports, federal officials sent America PAC a warning letter indicating that the sweepstakes could violate federal laws prohibiting bribery or other inducements to vote or register to vote. Given that the PAC’s cash prizes are exclusively available to registered voters in swing states, legal experts have argued that the $1 million incentive could be seen as a violation of these federal regulations.

Musk’s involvement in the political landscape has become increasingly prominent, especially as he emerges as one of former President Donald Trump’s staunchest supporters and top donors in the run-up to the elections. Reports indicate that he has contributed over $118 million to America PAC and has actively participated in rallies alongside Trump. The super PAC was established over the summer, following Musk’s endorsement of Trump after an assassination attempt on the former president. It has since become the primary organization managing the Trump campaign’s outreach efforts, including canvassing activities aimed at engaging voters.

The PAC’s initial announcement of its $1 million giveaways came earlier in October, expanding upon a previous plan to reward supporters $47 for successfully recruiting others to sign the PAC’s petition. Despite facing scrutiny and legal challenges, America PAC has persisted with its giveaways, which have totaled at least $9 million so far.

As the legal battle continues and Election Day approaches, the outcome of this case could have significant implications for both the future of America PAC and the political landscape leading up to the elections. Whether Musk’s strategies will be deemed legally permissible remains to be seen, but the current ruling allows for the ongoing giveaways, amplifying concerns about their potential impact on voter behavior and the electoral process.