Musk calls the $1 million option giveaway a legitimate promotion, not an illegal lottery By Investing.com

Investing.com– Elon Musk has asked a federal judge to dismiss a class-action lawsuit alleging that his $1 million-a-day donation to voters is an illegal lottery under Texas law to uphold the U.S. Constitution.

In the year In a lawsuit filed on November 5, 2024 by Arizona resident Jacqueline McCafferty, Tesla Inc (NASDAQ:) CEO Musk and his Political Action Committee America PAC misled participants by suggesting that winners would be chosen at random.

During the defense, the participants argued that signing the petition was an opportunity to win money as a spokesperson for America PAC, not a random lottery. He emphasized that providing personal information, as stated in the lawsuit, is harmless.

The lawsuit seeks $5 million in damages from the petition signatories, alleging the giveaway was deceptive and violated state laws.

Musk’s initiative, part of his endorsement of Donald Trump’s 2024 presidential campaign, involved $1 million in daily rewards for voters in swing states who signed petitions supporting the US Constitution. The legal debate centers on whether this is an illegal inducement or a legitimate promotional activity.