Philadelphia DA sues Elon Musk and his super PAC over $1M sweepstakes

By Marshall Cohen, CNN

(CNN) — Philadelphia’s district attorney asked a state judge on Monday to shut down tech billionaire Elon Musk’s controversial $1 million giveaway to registered voters, calling it an “illegal lottery scheme.”

Philadelphia District Attorney Larry Krasner, a Democrat, filed the civil lawsuit against Musk and his pro-Trump group, America PAC.

“America PAC and Musk are lulling Philadelphia citizens – and others in the Commonwealth (and other swing states in the upcoming election) – to give up their personal identifying information and make a political pledge in exchange for the chance to win $1 million,” the lawsuit alleges. “That is a lottery. And it is indisputably an unlawful lottery.”

A spokesperson for Musk’s super PAC did not comment on the lawsuit and instead highlighted the group’s latest $1 million winner, announced Monday – a registered voter from Hastings, Michigan.

A judge scheduled a hearing on the matter for Friday, meaning Musk’s sweepstakes could continue at least throughout the week, though Krasner’s office can ask for an expedited hearing. The case has been re-assigned to Judge Angelo Foglietta, a Democrat.

In the lawsuit, Krasner’s office argues that Pennsylvania law requires all lotteries to be “operated and administered by the state” – and that Musk’s daily $1 million giveaway must be halted because it’s operating outside of those legal guardrails.

“Though Musk says that a winner’s selection is ‘random,’ that appears false because multiple winners that have been selected are individuals who have shown up at Trump rallies in Pennsylvania,” the lawsuit says, arguing that the lottery rules are “deceptive.”

The case is based on Pennsylvania’s lottery and consumer protection laws. Krasner said his lawsuit was not about state and federal laws that prohibit vote-buying.

The US Justice Department has also warned Musk’s super PAC that his giveaway might violate federal laws that criminalize offering cash for voter registration.

The X owner and Tesla CEO, who has thrown his support behind former President Donald Trump and is spending millions of dollars supporting his candidacy, has publicized the $1 million prize by his political action committee aiming to increase voter registrations in hotly contested states.

Musk’s initial promise to pay prizes to registered voters immediately raised concerns from election law experts and some state officials who questioned whether it ran afoul of the law.

President Joe Biden on Monday called Musk’s giveaway to registered voters in swing states “totally inappropriate,” but didn’t weigh in on whether it was illegal.

“Tell him I’m registered! A million dollars,” Biden joked when he heard the question from reporters in Delaware.

He became more serious when asked if he thought it was legal conduct or election interference and responded: “I think it’s totally inappropriate.”

This story has been updated with additional details.

CNN’s Nikki Carvajal contributed to this report.

The-CNN-Wire
™ & © 2024 Cable News Network, Inc., a Warner Bros. Discovery Company. All rights reserved.