Musk’s $1 Million Voter Lottery Triggers Class Action Fraud Lawsuit

On Tuesday, Elon Musk and America PAC — a Super PAC the billionaire founded to support Donald Trump‘s 2024 presidential run — were hit with a second lawsuit over allegedly deceptive advertising practices related to its daily $1 million lottery.

From Oct. 19 through Election Day, America PAC awarded $1 million per day to one eligible registered voter in a swing state who had signed the group’s petition in support of the First and Second Amendment. Musk and the Super PAC claim to have collected over a million signatures. The Department of Justice warned Musk that this and other cash incentives offered to voters by the organization might be illegal, but it was Philadelphia District Attorney Larry Krasner who first sued the billionaire and America PAC last week, on behalf of the Commonwealth of Pennsylvania, accusing them of operating an “illegal lottery” under state law. Krasner also charged that, despite Musk and America PAC saying winners were chosen “randomly,” it seemed likely that the prizes were awarded only to Trump supporters.

In a Philadelphia court on Monday, a Musk lawyer admitted that America PAC did not select winners randomly, arguing that this meant the giveaway was not a lottery. Judge Angelo Foglietta ultimately ruled that the promotion did not have to cease in Pennsylvania — something of a moot decision, as America PAC had already announced the last two winners would be from Michigan and Arizona.

Now, however, Jacqueline McAferty, a resident of Maricopa County, Arizona, has brought a new class action against Musk and his political organization. McAferty’s complaint, filed in the U.S. District Court for the Western District of Texas (Musk resides in the district, and America PAC is registered there) contends that the stated terms of the $1 million giveaway violates Texas Deceptive Trade Practices Act — again because the winners were not picked “randomly.”

“Had Plaintiff been aware that she had no chance of receiving $1,000,000, she would not have signed or supported the America PAC petition and would not have provided her [personal, private information] to Defendants,” the filing reads. “Her signature/support, as well as her [personal, private information] were given as valuable consideration for a chance to receive the $1,000,00.” Those who signed the petition to be eligible for the drawing had to enter their full name, phone number, email address, and physical address.

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The suit also notes that the Super PAC’s petition “places no limitations on America PAC’s use of or sale of the personal data it collects, nor does it provide any additional information about the planned
use of data.” It alleges fraud and breach of contract for the group’s failure to disclose that it awarded its seven-figure cash prizes according to internal criteria. As Musk’s lawyer put it in the Philadelphia hearing, the Super PAC considered voters’ “suitability” as a spokesperson, as well as their personal stories.

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Legal woes stemming from Musk’s unprecedented financial incentives for voters during an election are just part of potentially much larger problems at America PAC. If Trump loses, many of his allies are prepared to blame the group for botching the Republican ground game in swing states. It would represent a humiliating defeat for Musk, who has placed an enormous bet on the former president in his first bid to play political kingmaker.

Indeed, whether America PAC can survive to another election cycle — as Musk hopes it will — may depend on the outcome of this one. In the meantime, it seems plenty of petition signers looking for a chance at a life-changing jackpot could come out of the woodwork to demand a payday.