Full Breakdown
Elon Musk Settles Lawsuits Over $1 Million Election Giveaways
By Drooid · · How we work
Settlement of Voter-Fraud Class Actions
On October 15, Elon Musk and his political action committee, America PAC, notified a federal court in Austin, Texas, that they had reached settlements in two class-action lawsuits filed by Arizona residents Jacqueline McAferty and Joy Harvick. The plaintiffs alleged the defendants misled voters in seven swing states by promising a daily $1 million “lottery-style” giveaway for signing a petition supporting the First and Second Amendments. The settlements are subject to court approval; terms have not been disclosed.
2024 Election Giveaway Scheme
In the weeks before the 2024 presidential election, America PAC promoted a daily $1 million prize to registered voters who signed its petition and provided personal information. Musk asserted the payouts would be given away “randomly.” Court filings later show Musk’s lawyers conceded the 18 winners were chosen because they could serve as strong spokespersons for the super PAC rather than by chance.
Timeline
- June 2024 – Federal judge ordered Musk to testify.
- August 2024 – Judge Robert Pitman said the plaintiffs’ reliance on the “random lottery” statements was plausible.
- October 15 – Settlement filings submitted; parties request a 30-day stay to finalize agreements.
Data and Statistics
- Two lawsuits alleged fraud in the giveaway.
- The scheme targeted voters in seven swing states.
- 18 individuals received $1 million checks, selected for their potential as PAC spokespeople.
- Musk has contributed over $275 million to Republican candidates and causes, according to court filings.
Official Statements & Responses
- Elon Musk and America PAC denied wrongdoing and said the settlements avoid prolonged litigation.
- Judge Pitman wrote that the promotional language suggested an “award” rather than a true lottery, making the plaintiffs’ reliance reasonable.
- Musk’s legal team argued the giveaway did not constitute an illegal lottery, emphasizing that participants were told winners would be “selected to earn” the money.
- The Justice Department previously warned the giveaways could violate federal vote-buying statutes, though no criminal charges were filed.
Criticism & Opposition
- The Philadelphia District Attorney’s Office attempted to halt the sweepstakes during the 2024 election, citing potential state law violations.
- The Wisconsin Election Commission concluded Musk likely broke state law with similar cash giveaways in a 2025 judicial race, but the La Crosse County District Attorney, Tim Gruenke, declined to bring charges, citing insufficient evidence for a bribery conviction.
Conflicting Reports & Gaps
- Musk’s lawyers conceded winners were not chosen by chance, while Judge Pitman noted plaintiffs could reasonably have believed the giveaway was a random lottery based on public statements.
- Settlement terms remain undisclosed, leaving the extent of any monetary or injunctive relief unclear.
Verbatim Quotes
- “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,” — Robert Pitman, district judge
- “I will also personally hand over two checks for a million dollars each in appreciation for you taking the time to vote,” — Elon Musk
Broader Implications
The settlements close a two-year legal saga that highlighted the intersection of political fundraising, voter outreach, and election-law compliance. By resolving the lawsuits without admission of liability, Musk avoids a potentially precedent-setting ruling on the legality of large-scale cash incentives tied to political messaging. The episode underscores ongoing scrutiny of high-profile donors’ tactics in swing-state campaigning and may influence future enforcement actions by election authorities.