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Elon Musk settles fraud lawsuits over his $1 million giveaways to 2024 election voters

Plaintiffs said that they were misled after being falsely told by Musk that million-dollar winners were randomly chosen in a lottery.

Elon Musk jumps on the stage as President Donald Trump speaks at a campaign rally at the Butler Farm Show in Butler, Pa., on Oct. 5, 2024. (AP Photo/Evan Vucci, File)
Elon Musk jumps on the stage as President Donald Trump speaks at a campaign rally at the Butler Farm Show in Butler, Pa., on Oct. 5, 2024. (AP Photo/Evan Vucci, File)Read moreEvan Vucci / AP

Billionaire Elon Musk settled two lawsuits Thursday that accused his political action committee, America PAC, of defrauding voters in Pennsylvania and six other swing states who participated in his $1 million daily giveaways during the 2024 presidential election.

Plaintiffs said that they were misled after being falsely told by Musk, the world’s richest person, that winners were randomly chosen in a lottery after signing a petition supporting the First and Second Amendments, according to reports from CNN.

Musk spent around $290 million effort to support President Donald Trump’s candidacy two years ago.

The terms of the settlements in a Texas-based federal court were not revealed, according to Forbes. America PAC didn’t respond for requests for comment.

Musk had originally announced the giveaway at a Harrisburg rally in October 2024.

“We’re going to be awarding a million dollars — randomly — to people who have signed the petition every day from now until the election,” he said at the time.

He later added during his speech that winners would be required to serve as spokespersons for the PAC.

Around then, the Justice Department warned Musk that the million-dollar giveaways could violate longstanding federal laws against vote-buying.

Just before Election Day 2024, Philadelphia District Attorney Larry Krasner filed a lawsuit in Common Pleas Court alleging that the giveaway was an illegal lottery that violates Pennsylvania consumer protection laws. His argument was rejected.

But during the proceeding, Musk’s attorneys acknowledged that none of the then-17 people who’d received the Musk money was randomly chosen. One of the attorneys, Chris Gober said, “There is no ‘prize’ to be won. Instead recipients must fulfill contractual obligations to serve as spokesperson for the PAC.”

The dispersals were widely criticized at the time, with Pennsylvania Democratic Gov. Josh Shapiro questioning the legality of the sweepstakes, saying it was “deeply concerning.”

During the midterm elections this year, Musk has continued his pattern of financing GOP candidates. He’s put up around $276 million for their cause, according to the New York Times.

In Pennsylvania, America PAC has spent at least $460,000 in recent weeks in each of three swing districts, which are held by Republican U.S. Reps. Rob Bresnahan of Luzerne County; Ryan Mackenzie of Lehigh County; and Scott Perry of York County.