Elon Musk PAC’s $1 Million Giveaways Will Keep Going As Philadelphia Judge Pauses Case

by · Forbes

Topline

Elon Musk’s America super PAC will continue awarding $1 million to swing state voters after a Philadelphia judge paused the pending lawsuit against the giveaways Thursday while Musk tries to move the case to federal court, according to multiple reports, meaning the litigation likely won’t be resolved in time to block the controversial sweepstakes before Election Day.

Elon Musk speaks at a Trump campaign rally at Madison Square Garden on Oct. 27 in New York.Copyright 2024 The Associated Press. All rights reserved

Key Facts

A hearing was held Thursday in Philadelphia District Attorney Larry Krasner’s case against Musk and America PAC, which seeks to block the PAC’s daily $1 million giveaways to a randomly selected swing state voter who signs a petition on the PAC’s website.

Krasner asked the court to block the $1 million giveaways, arguing they violate Pennsylvania’s laws on lotteries—which require them to be administered by the state—and its consumer protection laws, since America PAC allegedly isn’t transparent about the contest’s rules, how winners are chosen and how it’s using supporters’ information.

Musk requested late Wednesday to move the case to federal court, claiming that while Krasner alleges the giveaways should be stopped because they violate state law, the lawsuit concerns federal law and its “focus is to prevent Defendants’ purported ‘interference’ with the forthcoming Federal Presidential Election by any means.”

Philadelphia Judge Angelo Foglietta ruled at Thursday’s hearing to put the case on hold while the federal district court decides whether to take up the case, Reuters and the Philadelphia Inquirer report.

That means the giveaways will be free to continue while the federal court deliberates on the case, which Reuters notes makes it unlikely the sweepstakes could be halted before Election Day.

The DA’s office declined comment beyond its remarks earlier this week announcing the lawsuit, but the city opposed Musk’s attempt to move the case to federal court at Thursday’s hearing, with DA office attorney John Summers arguing the lawsuit “involves state law issues” and calling the last-minute attempt to move the litigation “both cowardly as well as irresponsible.”

What To Watch For

It’s unclear how long it will take the federal court to decide whether to take up the case against Musk and America PAC and move it out of state court. No hearing in the case had yet been scheduled as of Thursday morning.

Was Elon Musk At The Hearing?

No. While Foglietta had ordered all the parties in the case to appear at the hearing, at Krasner’s request, the billionaire was not in court Thursday. The hearing was rescheduled from Friday to Thursday at the last minute, and Musk attorney Matt Haverstick told the court his client “is a very busy man who can’t just materialize on 12 hours notice,” the Inquirer reports. Despite his previous order for the parties to appear in the case, the judge appeared to agree, the Inquirer reports, saying Thursday that Musk is “not going to get on a rocket ship and land in Philadelphia.”

Surprising Fact

Thursday’s hearing was rescheduled from Friday after Krasner raised security concerns about the legal proceedings. After Musk criticized Krasner on social media for bringing the lawsuit—claiming the DA “knows [the giveaway is] not illegal but wants a leftist judge to stop it before Election Day”—the billionaire’s supporters responded with a torrent of attacks against Krasner, he alleged in a court filing. Those included “antisemitic attacks” and “unquestionably … criminal” threats that “invit[ed] political violence,” the DA alleged, pointing to one user who posted Krasner’s home address and wrote on X, formerly known as Twitter, “Krasner loves visitors. Mask up and leave all cellphones at home.”

Tangent

In addition to Krasner’s lawsuit, the Justice Department has warned Musk about his PAC’s $1 million giveaways. The federal government reportedly sent the PAC a letter warning the sweepstakes may violate federal law, which prohibits people from paying or otherwise bribing Americans to vote or register to vote. Since America PAC’s $1 million giveaways are only open to registered voters in swing states, legal experts argue they may violate that law, since winning the $1 million incentivizes people to register to vote.

Key Background

Musk has become one of former President Donald Trump’s most outspoken supporters and biggest donors ahead of Election Day, pouring more than $118 million into America PAC while speaking out in support of Trump and attending campaign rallies alongside the ex-president. The billionaire helped found America PAC over the summer after he endorsed Trump in the wake of an assassination attempt on the ex-president, and the PAC has gone on to reportedly become the main group handling the Trump campaign’s canvassing efforts knocking on voters’ doors. Federal filings show nearly all of the money it’s raised is coming from Musk. The PAC announced its $1 million giveaways earlier in October, expanding its cash prizes after first announcing supporters would receive $47 if they recruited others to sign the group’s petition. America PAC has continued awarding $1 million per day even as the sweepstakes has come under legal scrutiny, and has given away at least $9 million so far.

Further Reading