Philadelphia DA sues Elon Musk to halt $1M giveaways
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SpaceX and Tesla founder Elon Musk awarded Kristine Fishell with a $1 million check during the town hall at the Roxain Theater on Oct. 20 in Pittsburgh. Photo: Michael Swensen/Getty Images
Philadelphia's top prosecutor is suing tech billionaire Elon Musk to stop his $1 million daily giveaways to Pennsylvania voters.
Why it matters: Musk's pro-Trump super PAC, which has already given out more than $9 million, is under increasing pressure to stop the lottery after the Justice Department warned last week that it could violate federal law.
Driving the news: Philadelphia District Attorney Larry Krasner, a Democrat, is seeking an injunction Monday to prevent more payments in Pennsylvania.
- Krasner's office argues in the filing that America PAC's giveaways flout state lottery and consumer protection laws.
What they're saying: Krasner's office says Musk and the PAC are using "deceptive, vague and misleading statements that create the likelihood of confusion or misunderstanding," per court records.
- "America PAC's and Musk's lottery is plainly not a lawful lottery," the DA's office writes in the complaint. "The Pennsylvania General Assembly has declared that illegal lotteries are a public 'nuisance.'"
The other side: America PAC didn't immediately respond to Axios' request for comment.
State of play: Musk, the world's richest man, has funneled millions into former President Trump's campaign, becoming one of the GOP's newest megadonors.
- He gave $75 million in three months to his pro-Trump PAC and has become an increasingly influential voice in the Republican party — both on social media and on the campaign trail.
Catch up quick: The SpaceX CEO had pledged to give away $1 million every day to registered voters in swing states who sign the super PAC's petition in favor of the First and Second Amendments.
- Pennsylvania Gov. Josh Shapiro, the state's former attorney general, recently told NBC's "Meet the Press" that he was concerned about the giveaways and believed they're "something law enforcement could take a look at."
- After the outcry, Musk's group reframed the giveaways, saying winners "will be selected to earn $1 million as a spokesperson for America PAC," per CNN.
Zoom in: Four of the nine sweepstakes winners are from Pennsylvania, per the PAC.
- More than 280,000 Pennsylvanians have signed the petition, some of whom live in Philadelphia County.
Between the lines: Experts have described Musk's sweepstakes as falling into a legal gray area.
- Federal law makes it illegal for anyone who "pays or offers to pay or accepts payment either for registration to vote or for voting."
- Those who violate the law can be fined $10,000 and imprisoned for five years.
What we're watching: A hearing on the lawsuit has been scheduled for Friday morning, per court records.