Three proposed class-action lawsuits have been filed against billionaire Elon Musk alleging that his political action committee, America PAC, engaged in fraudulent practices. The lawsuits claim the PAC misled voters by promising a random $1 million cash prize, even though the winners were allegedly predetermined.
Musk established America PAC in October to back President-elect Donald Trump’s successful presidential campaign. The PAC reportedly targeted Trump supporters in battleground states, encouraging them to share personal information and sign an online petition advocating for "free speech and the right to bear arms" in exchange for a chance to win the prize.
Between October 19 and Election Day on November 5, Musk's America PAC distributed over $16 million to more than a dozen recipients. However, what appeared to be a chance-based giveaway drew legal scrutiny. Philadelphia District Attorney Larry Krasner filed a complaint, accusing Musk of running an illegal lottery scheme.
Musk’s attorneys successfully argued in court that the payouts were not part of a lottery, as winners were not chosen at random but based on their “suitability” to serve as PAC spokespeople. They contended the $1 million payments were compensation, not prizes, allowing the distributions to continue. In reality, there were no random winners among the recipients.
Musk now faces three lawsuits alleging fraud and breach of contract for misleading voters about their chances to win.
On November 5, Jacqueline McAferty of Arizona filed a suit claiming she was tricked into providing personal information to America PAC under the false pretense of being eligible for the $1 million prize. The same day, a Michigan attorney filed a separate class-action lawsuit. Earlier this week, Texas lawyer Mark Bankston initiated another suit on behalf of Arizona resident Joy Harvick, further escalating the legal challenges against Musk.
Harvick's complaint notes:
“Had Plaintiff been aware that the lottery was not random, or that she did not have a fair chance to win the prize, or that her selection hinged on her perceived favorability to Defendants as a marketing prop, she would not have signed or supported the America PAC petition and would not have provided her PII [Personal Identifying Information] to Defendants."
McAferty's attorney, Josh Sanford, told HuffPost that the lawsuits are meant to hold Musk accountable for the scheme and are not grounded in political animus:
“The people who have sued Musk and his PAC agree with him on very fundamental political issues, but these lawsuits are not about those issues. These lawsuits are about how we are accountable to people for the promises that we make, and it doesn’t matter what your politics are."
"As Americans, we are above lying to people to get them to do what we want them to do.”
Musk was swiftly criticized.
The aforementioned Bankston, Harvick's attorney, also shared the news of the lawsuit, writing:
"In other news, I’m proud to announce that I have brought a class action lawsuit against Elon Musk and AmericaPAC for their fraudulent “lottery” giveaway. Speech is free, but lies you have to pay for."
You can see his post below.
Many praised his action.
This development only adds to Musk's legal troubles.
Musk’s America PAC, along with several other defendants—including the reelection campaign for Representative Michelle Steel, a California Republican—faces allegations of violating California labor laws in a class-action lawsuit filed in Orange County on October 30, according to court documents obtained by WIRED.
The plaintiffs, Tamiko Anderson and Patricia Kelly, worked as canvassers for Steel in October 2023. The lawsuit claims they were not paid the wages they were promised. America PAC is named as a defendant due to its role in providing campaign services for Steel.
The suit also alleges that the defendants failed to reimburse business expenses and provided inaccurate wage statements. It seeks class-action certification for "all current and former non-exempt employees of the defendants in California who worked as canvassers for Michelle Steel from October 30, 2023, to the present."
Earlier, WIRED reported accusations from Michigan canvassers who claimed they were deceived and mistreated during Musk and America PAC's voter outreach efforts for Trump. Workers hired by a subcontractor of America PAC alleged they were flown to Michigan, transported in the back of a U-Haul, and threatened with having to pay for their own hotel rooms if they didn’t meet unattainable quotas. Many were reportedly unaware they would be working on behalf of Trump until arriving.
Additional defendants named in the suit include The Blair Group, a North Carolina political consultancy, and Liberty Staffing Services, a Florida firm specializing in campaign-related hiring and payroll. Unnamed John Doe defendants are also listed. The plaintiffs claim they are owed compensation for unpaid wages and expenses under California labor law.
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