Elon Musk Slapped With Major New Complication

The reigning king of controversy has just found himself saddled with one more expensive problem.

A U.S. District Court judge in Texas has ordered Elon Musk to continue a lawsuit filed by voters who gave up personal information in exchange for winning a $1 million daily cash prize from Musk’s PAC, Reuters reports.

The case says the contest constitutes a form of illegal lottery or sweepstakes, which is prohibited under federal and state law, and misled people into sharing personal information through a fraudulent campaign.

What does the lawsuit against Musk claim?

Arizona resident Jacqueline McAferty is a defendant in the case and alleges that Musk and the PAC promised voters across seven key swing states a $1 million prize, and that those voters were then required to share their phone numbers, email addresses, physical addresses and names.

Musk’s legal defense says that petition signers did not suffer tangible harm from providing personal details.

Musk created America PAC during the 2024 election cycle, saying he wanted it to help support the U.S. Constitution, Reuters reports. He says those $1 million payments were incentives for voters to “earn” money and become spokespeople for the PAC.

Judge Robert Pitman in Austin disagreed with that position and ruled this week that the allegations by McAferty are plausible enough to take the case to trial. Pittman pointed to conflicting statements about whether any money was “awarded” and that voters could “win” the money through a sweepstakes-like plan.

In October 2024, a Philadelphia judge refused to end Musk’s giveaway, saying that city’s top prosecutor failed to show it was an illegal lottery. At the time, defendant Larry Krasner’s attorney John Summers brought up a Musk tweet on X that dubbed Judge Angelo Foglietta a “leftist judge,” shamed Musk for not attending the hearing, and called him “cowardly and irresponsible.”

Why does the Musk lawsuit matter?

Musk’s broader controversial engagement in political campaigns and his high-ranking role in the second Trump administration has made him a lightning rod for criticism.

The case also highlights how the use of social media and digital platforms in political fundraising and public outreach actually work and whether or not they are safe for consumers, the Washington Post reports. That opaque approach could mean little accountability and the use of potentially deceptive tactics to influence public opinion during key electoral moments.

Lawyers for America PAC and Musk did respond to a request for comment. The lawsuit was filed on Election Day, Nov. 5, 2024.