San Francisco, Aug 21 Tesla and SpaceX owner Elon Musk has been ordered by a US Federal judge to face a lawsuit from voters who accused him of defrauding them into signing a petition supporting the US Constitution for a chance to win his $1 million-a-day giveaway.
The plaintiff alleged that winners were pre-selected, but Musk announced it as a lottery opportunity to win the prize, according to reports.
US District Judge Robert Pitman in Austin, Texas, held that the victim Jacqueline McAferty, an Arizona resident, has made a plausible claim in her proposed class action against Musk and his political action committee America PAC.
McAferty further alleged America PAC illegally induced her to provide personal identifying information during a giveaway late in the 2024 election campaign.
McAferty alleged that Musk and America PAC encouraged voters in seven battleground states to sign his petition by promising a random selection of $1 million recipients, similar to a lottery, despite the voters having no chance of actually winning the money. Voters who signed were required to provide names, addresses, email addresses, and phone numbers, she said.
As per multiple media reports, Musk's lawyers and America PAC did not respond to requests for comment on the judgement. Musk established America PAC to back Republican candidate Donald Trump's 2024 presidential campaign.
During the hearing, Musk countered the allegations saying that his PAC campaign had mentioned that $1 million recipients were "selected to earn" the money and were expected to become America PAC spokespeople. These mentions should have dispelled the notion that the payment was a "prize," so he asked the court to dismiss the case, claiming he did not operate an illegal lottery.
But the judge cited other statements from PAC suggesting they were "awarding" the $1 million, and the money could be "won." The judge wrote that the plaintiff likely relied on these statements, believing the defendants were offering her a chance to enter a random lottery, regardless of PAC's actual intentions.
Musk rejected the claim that petition signers were harmed by giving their contact information. Pitman said an expert in political data brokerage could testify what that information was worth for voters in battleground states.
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