Elon Musk could be in some trouble as the businessman just got ordered to testify in class-action lawsuits related to his controversial election lottery.
The lottery in question had prompted election fraud accusations, with some claiming that it was akin to vote-buying. As it turned out, the sweepstakes wasn’t even luck-based, leading to further accusations.
Musk Offered $1M a Day to Voters Ahead of the Election
For reference, Musk was one of Donald Trump’s top backers during the 2024 presidential election. As the race for the presidency intensified, Musk and America PAC teamed up to launch the controversial election lottery. Musk and America PAC promised to give daily prizes of $1 million to lucky registered voters in swing states.
As a self-proclaimed supporter of free speech, Musk required participants to also sign a petition supporting freedom of speech and gun rights.
However, the sweepstakes operation did not go as planned as both Musk and America PAC were quickly slammed with class-action lawsuits. In addition to the election fraud charges, the two were also accused of running an illegal lottery operation.
While the Philadelphia District Attorney asserted that Musk and America PAC had effectively offered to pay for voting, a crime carrying a potential sentence of up to five years in prison, this accusation was ultimately dropped.
During the case, however, Musk’s attorney unveiled details about the lottery that led to further legal action.
Participants Say the Lottery Was Misleading
The Philadelphia case caused Chris Gober, the lawyer representing Musk, to explain the true nature of the controversial sweepstakes. According to him, the winners were not picked by chance but were chosen based on their suitability to represent America PAC.
Gober framed the $1 million wins not as prizes, but as payments for people representing America PAC.
However, this reveal wasn’t to participants’ liking, since it implied that many did not have actual chances of winning. As a result, two women in Arizona, namely Jacqueline McAferty and Joy Harvick, filed separate class-action lawsuits in Texas.
The suits accuse Musk and America PAC of tricking participants in the “lottery,” causing them to hand over personal information to play a lottery they couldn’t really win.
As a result, Musk continues to be under fire and has now been required to testify in the two class actions. US Magistrate Judge Susan Hightower also recommended that fraud claims survive summary judgment. At the same time, Hightower recommended dismissing breach of contract claims.
The final decision as to whether to approve the recommendations or not will be up to US District Judge Robert Pitman.