'Not illegal lottery': Musk defends legality of $1M-per-day election giveaway
What's the story
Elon Musk, the world's richest man, has requested a federal judge to dismiss a class-action lawsuit over his $1 million-per-day giveaway. The lawsuit was filed by Jacqueline McAferty of Arizona on Election Day, November 5, 2024. She claims Musk and his political action committee (PAC), America PAC, deceived voters into signing a petition in support of the US Constitution by falsely promising that winners would be chosen randomly.
Defense strategy
Musk refutes allegations of deceptive trade practices
In a court filing in Austin, Texas, Musk argued that the giveaway did not violate Texas law against deceptive trade practices. He clarified that participants were informed they would be reviewed for earning opportunities as America PAC spokespeople, not random prizes. "Make no mistake: an eligible voter's opportunity to earn is not the same thing as a chance to win," Musk stated in his defense.
Data concerns
Musk denies allegations of personal information misuse
The lawsuit also claims that petition signers were harmed by giving their names, addresses, and phone numbers. It implies that Musk and America PAC could sell this personal information. But Musk has also dismissed these allegations. Representatives for the proposed class are yet to comment on this matter.
Legal precedent
Previous judge declined to halt Musk's giveaway
Notably, a day before the lawsuit was filed, a Philadelphia judge had declined to halt Musk's giveaway. The city's top prosecutor also failed to show it was an illegal lottery. McAferty's lawsuit is seeking at least $5 million in damages for all those who signed the petition. Notably, Musk resides in Texas where his electric car company Tesla is headquartered in Austin.