Investing.com– Elon Musk has requested a federal judge to dismiss a proposed class-action lawsuit alleging that his $1 million-a-day election giveaway to support the U.S. Constitution was an illegal lottery under Texas law.
The lawsuit, filed on November 5, 2024, by Arizona resident Jacqueline McAferty, claims that Tesla Inc (NASDAQ:TSLA) CEO Musk and his political action committee, America PAC, misled participants by suggesting winners would be chosen randomly.
In his defense, Musk argued that participants were fully aware that signing the petition provided an opportunity to earn funds as America PAC spokespeople, not through a random lottery. He emphasized that providing personal information did not cause harm, as alleged in the lawsuit.
The lawsuit seeks $5 million in damages for petition signers, alleging that the giveaway was deceptive and violated state laws.
Musk’s initiative, which was part of his support for Donald Trump’s 2024 presidential campaign, involved daily $1 million prizes to registered voters in swing states who signed a petition supporting the U.S. Constitution. The legal debate centers on whether this constitutes an illegal inducement or a legitimate promotional activity.
