A report exposes the legal disputes surrounding the strategies of an influential businessman who is under scrutiny for his potential influence on the electorate. As the case continues in court, legal maneuvers are attempting to change the course of a dispute with implications for the upcoming elections.
A hearing was held Thursday in the case brought by Philadelphia District Attorney Larry Krasner against Elon Musk and America PAC, seeking to block the PAC’s daily $1 million drawings awarded to a voter in a key state who signs a petition on the PAC’s website.
Krasner asked the court to stop the sweepstakes, arguing that they violate Pennsylvania lottery laws —which require lotteries to be run by the state—and consumer protection laws because America PAC is allegedly not transparent about the contest rules, the winner selection process, and the use of entrants’ information.
Musk asked Wednesday night to move the case to federal court, arguing that while Krasner contends the sweepstakes violate state law, the lawsuit actually involves federal law and its «focus is on enjoining Defendants’ alleged ‘interference’ in the upcoming federal presidential election by any means.»
Philadelphia Judge Angelo Foglietta ruled at a hearing Thursday that the proceedings be stayed while the federal court decides whether to take over jurisdiction, Reuters and the Philadelphia Inquirer reported .
This means the drawings can continue while the federal court deliberates, making it unlikely they will stop before Election Day, according to Reuters .
The district attorney’s office declined to comment beyond its earlier statements announcing the lawsuit, but the city opposed Musk’s request to move the case to federal court at Thursday’s hearing. Attorney for the DA’s office, John Summers , argued that the lawsuit «involves issues of state law» and called the last-minute attempt to move the litigation «as cowardly as it is irresponsible.»
What to keep in mind
It’s unclear how long it will take for the federal court to decide whether to take up the litigation against Musk and America PAC and move it out of state court. As of Thursday morning, no hearing had been scheduled in the proceedings.
Was Elon Musk at the hearing?
No. Although Judge Foglietta had ordered all parties in the litigation to appear at the hearing, at Krasner’s request, the billionaire did not show up on Thursday. The hearing was rescheduled from Friday to Thursday at the last minute, with Musk’s attorney, Matt Haverstick , arguing to the court that his client “is a very busy man who can’t just show up on 12 hours’ notice,” the Inquirer reports . Despite his initial order for the parties to be present, the judge appeared to agree, stating on Thursday that Musk “is not going to hop on a rocket ship and land in Philadelphia,” according to the Inquirer.
Surprising fact
The hearing originally scheduled for Friday was moved up to Thursday after Philadelphia District Attorney Larry Krasner raised security concerns about the legal process.
Following Elon Musk’s criticism on social media of Krasner for filing the lawsuit—claiming that the prosecutor «knows the giveaway isn’t illegal, but wants a leftist judge to stop it before Election Day»—the billionaire’s supporters responded with an avalanche of attacks against Krasner, he alleged in a court filing.
These included «anti-Semitic attacks» and «undoubtedly… criminal» threats that «invite political violence,» the prosecutor said, singling out one user who posted Krasner’s home address and wrote on X, formerly known as Twitter: «Krasner loves visitors. Wear masks and leave all cell phones at home,» he said.
In addition to the lawsuit filed by Philadelphia District Attorney Larry Krasner , the U.S. Department of Justice has warned Elon Musk about $1 million giveaways being run by his super PAC, America PAC. The federal government has reportedly sent a letter to the PAC warning that these giveaways may violate federal law, which prohibits paying or bribing citizens to vote or register to vote.
Because America PAC’s $1 million sweepstakes target only registered voters in key states, legal experts argue they may violate that law, since the $1 million prize incentivizes people to register to vote.
Background
Elon Musk became one of former President Donald Trump ’s most vocal supporters and top donors in the run-up to Election Day, contributing more than $118 million to America PAC. In addition to publicly voicing his support for Trump, Musk attended campaign rallies alongside the former president. The billionaire co-founded America PAC over the summer after backing Trump following an assassination attempt on the former president. The PAC reportedly became the primary group behind Trump’s campaign efforts, including door-to-door canvassing to persuade voters.
Federal records show that nearly all of the funds raised by the PAC have come from Musk. In early October, America PAC announced $1 million daily drawings, expanding its cash prizes after initially offering $47 to those who recruited others to sign the group’s petition. Despite legal scrutiny, the PAC continued to give away $1 million a day and handed out at least $9 million to date.
