Elon Musk Faces Lawsuit Over Alleged Fake $1 Million Lottery During 2024 Campaign

A U.S. federal judge has ruled that Elon Musk must face a lawsuit accusing him and his political action committee, America PAC, of defrauding voters during the 2024 election campaign with a bogus $1 million lottery scheme.

U.S. District Judge Robert Pitman, sitting in Austin, Texas, said plaintiff Jacqueline McAferty had “plausibly alleged” in her proposed class action that Musk and America PAC induced voters to hand over personal information under the guise of a lottery-style giveaway.

Allegations of Voter Deception

McAferty, an Arizona resident, alleged that Musk and his PAC persuaded voters in seven battleground states to sign a petition by promising that winners of a $1 million prize would be chosen randomly, as in a lottery.

However, she claimed that there was never a genuine chance of winning. Instead, voters who signed were required to submit personal details—including their names, addresses, email addresses, and phone numbers—which could later be used for political data mining.

Musk founded America PAC to support Donald Trump’s successful 2024 presidential campaign.

Musk’s Defense and Judge’s Ruling

In seeking to dismiss the case, Musk argued that disclaimers proved no illegal lottery had taken place. He claimed that the so-called $1 million recipients were not “winners” but rather “selected to earn” the money in exchange for becoming PAC spokespeople—undermining the idea of a prize.

But Judge Pitman noted that several statements suggested otherwise, including claims that the defendants were “awarding” $1 million and that the money could be “won.”

“It is plausible that plaintiff justifiably relied on those statements to believe that defendants were objectively offering her the chance to enter a random lottery—even if that is not what they subjectively intended to do,” Pitman wrote.

Musk also dismissed the claim that voters were harmed by providing personal information. But the judge countered that an expert in political data brokerage could testify to the value of voter information, particularly in battleground states.

Background and Next Steps

The lawsuit, McAferty v Musk et al (No. 24-01346), was filed on Election Day, November 5, 2024. A day earlier, a Philadelphia judge declined to stop the giveaway after prosecutors failed to prove it constituted an illegal lottery.

Lawyers for Musk and America PAC have not yet responded to requests for comment.

Musk, a Texas resident, also serves as CEO of Tesla, whose headquarters are in Austin.

If successful, the lawsuit could have significant implications for the use of lottery-style incentives in U.S. political campaigns and the collection of voter data.