Philadelphia DA Sues Elon Musk’s Pro-Trump PAC Over $1 Million Giveaway
by Alison Durkee · ForbesTopline
Philadelphia’s district attorney sued billionaire Elon Musk and his super PAC supporting Donald Trump’s candidacy Monday over the group’s $1 million giveaway to swing state voters, the first known lawsuit over the sweepstakes as the cash prize has come under widespread legal scrutiny.
Key Facts
Philadelphia District Attorney Larry Krasner—a progressive Democrat—sued Musk and America PAC in state court on behalf of the commonwealth of Pennsylvania over the giveaway, which awards $1 million each day to a randomly selected swing state voter who has signed a petition on the PAC’s website.
Nearly half of the giveaway’s winners so far have been from Pennsylvania, the Philadelphia Inquirer notes.
The lawsuit says the PAC and Musk “must be stopped, immediately” from continuing the giveaway, arguing, “America PAC and Musk hatched their illegal lottery scheme to influence voters in [the general] election.”
The litigation comes after the Justice Department previously sent a letter to the PAC warning the giveaway may violate federal law, which states the government will prosecute anyone who “pays or offers to pay or accepts payment either for registration to vote or for voting”—which legal experts argue is the case with Musk’s sweepstakes, because only people who are registered to vote can win.
Krasner argues the lottery scheme also violates Pennsylvania law, which prohibits lotteries that aren’t operated by the state, and violates Pennsylvania’s consumer protection laws by “deploying deceptive, vague or misleading statements that create a likelihood of confusion or misunderstanding.”
Musk has not yet responded to a request for comment, and America PAC directed Forbes to a tweet showing the PAC’s latest $1 million winner, as the group has continued its $1 million giveaway in recent days despite the DOJ’s warning.
What To Watch For
A hearing in the Philadelphia lawsuit will take place on Friday, according to the court docket.
Crucial Quote
“America PAC and Musk are lulling Philadelphia citizens—and others in the Commonwealth (and other swing states in the upcoming election)—to give up their personal identifying information and make a political pledge in exchange for the chance to win $1 million,” the lawsuit states. “That is a lottery. And it is indisputably an unlawful lottery.”
Chief Critic
Musk has defended the $1 million giveaway at campaign events in recent days, with The New York Times reporting he claimed Friday the petition was “not a petition to vote or to register” to do so. (The petition pledges signers’ support for the First and Second Amendments, but only registered voters in swing states are eligible for the giveaway.) “Kind of like a no brainer,” Musk said about signing the petition, as quoted by the Times.
What We Don’t Know
Whether Musk or his PAC will face any penalties for running the $1 million giveaway if it’s found to be illegal. The federal law prohibiting paying or otherwise incentivizing people for registering to vote is punishable by a $10,000 fine and/or up to five years in prison. While the lawsuit filed Monday is a civil lawsuit that only seeks to halt the giveaway, Krasner’s office also noted in a statement that the lawsuit “neither precludes nor requires potential future action under Pennsylvania criminal law.”
Big Number
$118.6 million. That’s how much Musk has given to America PAC through Oct. 16, according to federal filings, making up most of the $130.3 million the PAC has raised overall.
Forbes Valuation
Forbes estimates Musk’s net worth at $274.7 billion as of Monday morning, making him the richest person in the world.
Key Background
Musk has emerged as one of former President Donald Trump’s biggest allies in the presidential election, pouring his money into America PAC while appearing at campaign rallies for the ex-president and speaking out in his favor on social media. The Tesla CEO’s companies stand to heavily benefit if Trump wins—as may the CEO himself, as Trump has floated making Musk the “secretary of cost-cutting” and Musk has pushed Trump to establish an “office of government efficiency.” Musk helped found America PAC after endorsing Trump in the wake of the assassination attempt on the ex-president, which marked an about face for the billionaire, who has previously supported Democrats and spoken out against Trump. The $1 million giveaways began in late October, after the PAC had already raised eyebrows for giving $47 to people for soliciting swing state voters to sign the PAC’s petition. America PAC is also reportedly handling nearly all of the Trump campaign’s ground game, though reports suggest it’s faced issues with its tech infrastructure allowing canvassers to say they’ve knocked on doors when they actually haven’t.