Voters Claim Elon Musk’s $1 Million Giveaway Was a Scam—Lawsuit

November 6, 2024

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Elon Musk, billionaire and tech mogul, is facing a new legal battle over his $1 million-a-day giveaway, a contest promoted by Musk’s political group America PAC. In a class-action lawsuit filed on Tuesday, Arizona resident Jacqueline McAferty claims Musk and his organization misled voters who signed a petition for a chance to win, alleging the giveaway was predetermined and intended to collect personal data.

McAferty, representing a group of registered voters, filed the suit in Austin, Texas, accusing Musk of fraudulently enticing people to sign the petition under the promise of a fair drawing. According to the complaint, Musk’s campaign was meant to support constitutional principles like free speech and gun rights, but the process was allegedly rigged to drive up attention on Musk’s social platform, X (formerly Twitter), while gathering personal information for commercial gain.

McAferty claims that Musk’s team promised a chance to win based on random selection, yet the lawsuit suggests winners were pre-chosen. She argues that Musk profited from increased traffic and engagement on X, along with the collection of personal data such as names, addresses, and phone numbers that could be sold to third parties.

Just one day before McAferty’s suit, Philadelphia’s district attorney Larry Krasner called for an end to Musk’s giveaway, labeling it an “illegal lottery.” Though the court did not grant Krasner’s request, the suit has sparked wider scrutiny, with claims that Musk’s contest may have violated state lottery laws.

Musk, a Texas resident and vocal supporter of Republican presidential candidate Donald Trump, launched the contest across seven battleground states as part of his PAC’s push to influence key issues in the U.S. presidential race. His contest gained significant attention among conservative voters, sparking debate over the influence of high-profile figures on U.S. politics. However, the lawsuit has thrown Musk’s methods and motivations into question, with McAferty and her legal team demanding at least $5 million in damages on behalf of those who signed.