A federal judge has decided not to dismiss a fraud lawsuit against Elon Musk and his America PAC over the billionaire's controversial $1 million election giveaway. U.S. District Judge Robert Pitman in Austin, Texas, on August 18 denied summary judgment to Musk and America PAC on a fraud claim brought by Arizona resident Jacqueline McAferty, allowing the case to proceed toward trial.
The case stems from an unusual promotion launched by Musk and America PAC before the 2024 presidential election. The promotion offered registered voters in seven swing states the opportunity to possibly win $1 million a day. Musk publicly said the recipients would be selected randomly. To participate, people were required to provide personal information and sign a petition supporting free speech and gun rights.
The promotion later came under legal scrutiny after the Philadelphia District Attorney's Office sued Musk and America PAC, alleging the giveaway amounted to an illegal lottery. That case ultimately provided evidence about how the $1 million recipients were actually selected, raising questions about whether the process matched Musk's public description.
McAferty's lawsuit alleges she was misled by the promotion. Her attorneys argue that the giveaway was presented as a random drawing when the selection process was something else entirely, and that participants handed over valuable personal data under false pretenses. Musk's legal team had sought to end the case before trial, arguing the claims lacked merit, but Judge Pitman found enough evidence for the fraud claim to survive.
The ruling is the latest legal headache for Musk stemming from his deep involvement in the 2024 election cycle. The billionaire spent hundreds of millions of dollars supporting the Trump campaign through America PAC, and his voter-turnout tactics drew scrutiny from election officials and prosecutors in multiple states. Legal experts say the fraud case could establish important precedents about how far private giveaways tied to voter engagement can go before crossing into deception.
Musk has not publicly commented on the judge's decision. America PAC wound down much of its operations after the election, but the legal fallout from its most famous stunt continues. If the case goes to trial, it could force Musk and his political operatives to testify under oath about the inner workings of the $1 million promotion. Election-law experts say the case sits at the intersection of campaign finance, consumer protection and data privacy, and its outcome could shape how billionaires run voter-engagement efforts in future cycles. For now, the fraud claim survives, and Musk's legal team will have to fight it on the merits.