Musk settles class-action suits over $1M election lottery, avoids court testimony

Elon Musk, CEO of Tesla and SpaceX, has reached a settlement in class-action lawsuits filed against him over a "$1 million election lottery" promotion targeting voters in swing states just before the 2024 US presidential election.

Musk and his super PAC, America PAC, filed notices with a federal court in Austin, Texas, indicating they had reached settlements with plaintiffs in two related class-action suits, Reuters and Forbes reported Thursday (local time).

The terms of the settlement were not disclosed, and the agreement must still receive final court approval to take effect.

Ahead of the 2024 presidential election, Musk had offered voters in seven swing states a chance to win $1 million through a daily random drawing if they signed a petition expressing support for the First and Second Amendments.

The promotion was widely seen as an effort to encourage voter registration among conservatives in swing states and to support Donald Trump, then the Republican presidential candidate.

The Justice Department warned at the time that the promotion could run afoul of federal law, and Pennsylvania prosecutors filed a civil lawsuit in state court seeking to shut it down.

Musk's team argued in a Pennsylvania court that the winners had not been chosen by random drawing but were selected based on their suitability to serve as America PAC spokespersons, and that the $1 million was compensation for that role — a defense that allowed the promotion to continue.

America PAC Director Chris Young also confirmed that the winners had undergone a vetting process.

Arizona residents who had signed the petition then filed a class-action fraud lawsuit against Musk and America PAC, alleging that voters had been deceived.

Musk's side had consistently denied the fraud allegations in court before ultimately agreeing to settle.

If the settlement receives court approval, Musk will be able to avoid testifying in court — testimony a judge had ordered in June.

Meanwhile, Musk drew controversy last year when he made similar remarks during the Wisconsin Supreme Court election in March, offering cash to two voters. Wisconsin prosecutors declined to charge him in August, however, saying no one had in fact received money in exchange for their vote and that his remarks had later been corrected.