Musk’s $1 million voter sweepstakes sparks class action fraud lawsuit

Tuesday, Elon Musk and America PAC — a Super PAC to support the billionaire Donald Trump2024 presidential bid — have been hit with a second lawsuit over alleged deceptive advertising practices related to the $1 million daily lottery.

From Oct. 19 through Election Day, America PAC gave $1 million a day to an eligible registered voter in a swing state who signed the group’s petition in support of the First and Second Amendments. Musk and the Super PAC claim to have collected more than a million signatures. The Department of Justice warned Musk that this and other cash incentives given to voters by the organization could be illegal, but it was Philadelphia District Attorney Larry Krasner who first sued the billionaire and America PAC Last week on behalf of the Commonwealth of Pennsylvania, accusing them of operating an “illegal lottery” under state law. Krasner also charged that despite Musk and America PAC saying the winners were chosen “randomly,” it appeared likely that the awards would only be given to Trump supporters.

In a Philadelphia court on Monday, a lawyer for Musk admitted that America PAC did not randomly select winnersarguing that this meant the giveaway was not a lottery. Judge Angelo Foglietta ultimately ruled that the promotion didn’t have to stop in Pennsylvania — somewhat of a questionable decision, since America PAC had already announced that the final two winners would be from Michigan and Arizona.

Now, however, Jacqueline McAferty, a resident of Maricopa County, Arizona, has brought one the new collective action against Musk and his political organization. McAferty’s complaint, filed in the U.S. District Court for the Western District of Texas (Musk lives in the district, and America PAC is registered there) claims that the stated terms of the $1 million donation violate the Texas Deceptive Trade Practices Act — again, because the winners were not chosen “at random.”

“Had Plaintiff known she had no chance of receiving $1,000,000, she would not have signed or supported the America PAC petition or provided (personal, private information) to Defendants,” the filing states . “Her signature/endorsement as well as her (personal, private) information was deemed valuable for a chance to receive the $1,000.00.” Those who signed the petition had to enter their full name, phone number, email address and physical address to be eligible for the drawing.

The lawsuit also states that the Super PAC petition “does not impose limitations on America PAC’s use or sale of the personal data it collects, nor does it provide additional information about the planned plan.
use of data.” It is claimed fraud and breach of contract for the group’s failure to disclose that it awarded its seven-figure cash awards according to internal criteria. As Musk’s lawyer said in the Philadelphia hearing, the Super PAC considered the “suitability” of voters as a spokesperson, as well as their personal stories.

The legal problems stemming from Musk’s unprecedented financial incentives to voters during elections are just part of potentially much bigger problems at America PAC. If Trump loses, many of his allies are prepared to blame the group spoil the republican ground game in cradle states. It would represent a humiliating defeat for Musk, who bet big on the former president in his first attempt at playing political director.

Indeed, if America PAC can survive another election cycle – like Musk hope it will be — may depend on its outcome. Meanwhile, it looks like many petition signers looking for a shot at a life-changing jackpot may be coming out of the woodwork to demand a payday.