A Texas federal court has allowed a lawsuit against Elon Musk to move forward, accusing the tech billionaire and his political action committee, America PAC, of misleading voters during the 2024 election campaign with a $1 million “lottery.”

Arizona resident Jacqueline McAferty filed the class-action suit, alleging that Musk and America PAC improperly induced voters in seven battleground states to provide personal information—including names, addresses, emails, and phone numbers—under the promise that winners would be chosen at random.

U.S. District Judge Robert Pitman in Austin ruled that McAferty’s allegations were plausible, noting that statements from Musk and his team suggested that voters could “win” the $1 million, even if the defendants did not intend the promotion to function as a true lottery.

Background of America PAC and the Lottery Claim
Musk created America PAC to support Donald Trump’s successful 2024 presidential run. According to the lawsuit, petition signers were told that $1 million recipients would be “selected to earn” the money and act as spokespeople for America PAC, raising questions about whether the giveaway was legitimate or misleading.

In court filings seeking dismissal, Musk argued that several “red flags” made it clear the promotion was not a conventional lottery. However, Judge Pitman highlighted language suggesting that the money could indeed be “awarded” or “won,” supporting McAferty’s claim that she reasonably believed she had a chance to win.

Potential Impact of Personal Data Collection
Judge Pitman also indicated that an expert in political data brokerage could testify about the value of the personal information collected from petition signers, emphasizing that the plaintiffs could have suffered real harm from sharing their details.

The lawsuit was filed on Election Day, November 5, 2024, following earlier legal attempts to stop the giveaway. A Philadelphia judge had refused to halt the promotion, ruling that prosecutors had not demonstrated it was an illegal lottery.

Musk, a Texas resident, runs Tesla, headquartered in Austin. Lawyers for Musk and America PAC have not yet responded to requests for comment.

The case is officially titled McAferty v. Musk et al, U.S. District Court, Western District of Texas, No. 24-01346.

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