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Top StoriesUS Court rules Elon Musk may temporarily continue his cash giveaways

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US Court rules Elon Musk may temporarily continue his cash giveaways

A Pennsylvania state judge has ruled that Elon Musk can temporarily continue distributing cash to registered voters, though questions remain about the legality of his actions.

Musk, a vocal supporter of Donald Trump, has been offering cash rewards through his political group, America PAC, targeting registered voters in key swing states who sign a petition—a move U.S. officials argue could violate election laws. Musk has dismissed these concerns.

Philadelphia District Attorney Lawrence Krasner filed a lawsuit against Musk earlier this week, calling for an immediate halt to the $1 million giveaways, arguing it must be stopped before the presidential election.

During a hearing on Thursday, Judge Angelo Foglietta determined that the case would be paused as a federal court considers whether to take jurisdiction.

Should the federal court decide not to proceed with the matter, the case will revert to state court for further handling.
In a post on X, the platform Musk owns, he said the ruling was “American Justice FTW (for the win)”.
It is unlikely the case will be resolved before Tuesday’s election.

“We will proceed to federal court, and we will address the issues there and seek to have the matter remanded back to the state court,” John Summers, a lawyer working with Mr Krasner, told reporters after the hearing.
“After all, this is a case that involves state law issues,” he added.

Musk was absent from the Philadelphia court during the hearing.

Earlier this month, the billionaire declared that he would be awarding a US$1 million prize daily to individuals in key battleground states—Pennsylvania, Georgia, Nevada, Arizona, Wisconsin, Michigan, and North Carolina—until November 5.

These states are critical in a tightly contested race between Trump and his Democratic opponent, Kamala Harris.

On Thursday, another winner was revealed: Dacey from Fremont, North Carolina, who received a US$1 million check from Musk’s America PAC.

To qualify for the giveaway, registered voters must provide personal information such as their addresses and phone numbers. Additionally, they are required to sign a pledge affirming their support for the US Constitution.

The lawsuit filed against Musk claimed he was “running an illegal lottery.”.

“America PAC and Musk are lulling Philadelphia citizens… to give up their personal identifying information and make a political pledge in exchange for the chance to win US$1 million,” Mr Krasner said in the lawsuit. “That is a lottery. And it is indisputably an unlawful lottery.”

The lawsuit also accuses the Tesla co-founder of violating consumer protection laws by using “deceptive, vague, or misleading statements” that could create confusion.

But Musk’s lawyers have argued otherwise.

“The complaint, in truth, has little to do with state-law claims of nuisance and consumer protection,” Musk’s lawyers wrote in federal filings, according to a CNN report.

“Rather, although disguised as state law claims, the complaint’s focus is to prevent defendants’ purported ‘interference’ with the forthcoming federal presidential election by any means.”

Just a day before Judge Foglietta’s ruling, the district attorney’s team asked for enhanced security for the hearing after Musk retweeted a post insulting Krasner that led to threats against him.

“It immediately triggered an avalanche of posts from Musk’s followers. Many made antisemitic attacks on Krasner,” Krasner’s team wrote in a legal filing.

Before the case was filed, Musk’s PAC was also warned by the US justice department that its lottery-style giveaway might violate federal election law.

The BBC has previously reached out to America PAC for comment.

Under US law, it is illegal to pay people to register to vote. But legal experts have told the BBC that whether the giveaway violates federal law is a grey area.

Musk could face a US$10,000 fine and up to five years in prison if a court finds he broke the law.

Musk himself, who has been aggressively campaigning for Trump, has insisted voters who want to be eligible for the prizes do not need to register as Republicans or go ahead with casting a vote.

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