2 weeks Ago
Topline The Philadelphia district attorney suing Elon Musk and his America super PAC for its $1 million giveaways asked the court Wednesday to increase security at a planned hearing in the case Friday—and asked for Musk to appear in person—as the DA said he’s received violent threats from Musk’s supporters over the lawsuit. Key Facts What To Watch For The hearing in the lawsuit is scheduled for 10 a.m.
Friday in Philadelphia, and it’s unclear whether the judge will rule then on blocking the $1 million giveaways or if a ruling will come later. Chief Critic In addition to Musk opposing the lawsuit and Krasner on social media, America PAC has continued its $1 million giveaways even as legal scrutiny has intensified. The PAC responded to Forbes’ request for comment on the initial lawsuit only with a link to a tweet on its most recent sweepstakes winner.
Why Could The $1 Million Giveaways Be Illegal? Krasner alleges the $1 million giveaways violate Pennsylvania law because the state only allows lotteries that are administered and regulated by the state, unlike this giveaway. The DA also alleges it violates Pennsylvania’s consumer protection laws by “deploying deceptive, vague or misleading statements that create a likelihood of confusion or misunderstanding,” pointing to alleged issues with the lottery like it not transparently disclosing its rules or methods for choosing winners and not providing information about how America PAC is handling participants’ information. In addition to Krasner’s allegations, the Justice Department has also warned Musk the giveaways may violate federal law, which prohibits paying or bribing people—including through lotteries—to vote or register to vote.
Legal experts argue Musk’s giveaways violate that law because only registered voters in swing states are eligible to win the $1 million, so it’s incentivizing people to register to vote. Forbes Valuation Forbes estimates Musk’s net worth at $270.8 billion as of Wednesday afternoon, making him the richest person in the world.
The billionaire has given at least $118.6 million to America PAC, based on federal filings through Oct. 16, making up most of the money raised by the PAC.
Key Background Musk has become one of former President Donald Trump’s biggest donors and outspoken supporters ahead of the presidential election, as the billionaire CEO and his businesses stand to heavily benefit from a Trump win. The Tesla CEO, who was previously critical of Trump, has called for the ex-president to create an “office of government efficiency” if he retakes the White House, and Trump has floated he could name Musk the “secretary of cost-cutting.” Musk’s involvement with America PAC was first announced over the summer, after the CEO endorsed Trump in the wake of an assassination attempt on the ex-president.
The PAC was primarily assisting Trump by handling the bulk of the Trump campaign’s ground game in knocking on voters’ doors—an effort that has been plagued with tech issues, reports suggest —before announcing the $1 million giveaways earlier in October. The Philadelphia lawsuit is the first and so far only formal legal action that’s been taken against Musk and America PAC over the $1 million giveaways, as the DOJ’s letter only warns the sweepstakes may violate federal law. Further Reading.
