Musk Settles Lawsuits Over $1 Million Voter Giveaways

Elon Musk and his political action committee, America PAC, have settled two proposed class-action lawsuits stemming from a $1 million daily giveaway to registered voters during the 2024 presidential election. The settlement notices were filed on Thursday, Oct. 15, in the U.S. District Court for the Western District of Texas in Austin, according to court filings.

The lawsuits, brought by Arizona residents Joy Harvick and Jacqueline McAferty, alleged that Musk and America PAC defrauded voters by claiming the payouts were random. The plaintiffs argued they would not have signed a petition supporting conservative causes and provided personal data if they had known the winners were not chosen by chance. Musk and America PAC have denied wrongdoing.

Settlement Details and Legal Status

The settlement notices did not disclose the terms of the agreement. Judge Robert Pittman of the US District Court for the Western District of Texas must approve the settlements. The parties have requested a 30-day pause in the cases to finalize the deals and file for preliminary approval.

The settlement allows Musk to avoid a deposition. In June, U.S. Magistrate Judge Susan Hightower had ordered Musk to testify under oath in both cases. Musk’s attorneys had argued for months against requiring him to sit for questioning, but the court denied his objections.

Allegations of Misleading Claims

During the final weeks of the 2024 election, America PAC offered $1 million a day to registered voters in seven battleground states who signed a petition supporting free speech and the right to bear arms. Signers provided their names, addresses, email addresses, and phone numbers.

At a rally in Harrisburg, Pennsylvania, on Oct. 19, 2024, Musk said, "We're going to be awarding a million dollars randomly to people who have signed the petition every day."

However, in separate litigation, Musk’s lawyers conceded that winners were "not chosen by chance" but were picked based on whether they would be strong spokespersons for the pro-Trump super PAC. America PAC lawyer Chris Gober stated at a hearing in Philadelphia on Nov. 4, 2024, "The $1 million recipients are not chosen by chance."

The plaintiffs alleged that the 18 winners were selected in part because they might make good spokespeople for the PAC. They also accused Musk and America PAC of profiting from the voter data collected. Musk and the PAC argued the money was not a prize but a "sponsorship opportunity," and that signers suffered no harm by sharing contact information.

Previous Legal Challenges

The Justice Department warned Musk in 2024 that the giveaways could violate federal laws against vote-buying. The Philadelphia District Attorney filed a lawsuit to stop the sweepstakes, but a state judge allowed it to proceed through Election Day.

In August 2025, U.S. District Judge Robert Pitman refused to throw out McAferty's lawsuit, noting it was plausible voters relied on promotional statements describing the money as "awarded" and "won." Earlier this year, the bipartisan Wisconsin Election Commission concluded Musk likely broke state law with similar cash giveaways in a 2025 state judicial race, though prosecutors declined to bring charges due to weak evidence.

Why it matters

The settlement concludes a significant legal chapter for Musk, who was a major donor to Donald Trump’s 2024 campaign. While the settlements are not yet final, they resolve claims that voters were misled about the nature of the sweepstakes. Musk has continued to be a prominent political donor, with reports indicating he has spent at least $276 million on GOP candidates for the midterm elections, though other reports cite an estimated $366 million. The case highlights ongoing scrutiny of political data collection and campaign finance practices.

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Sources

• cnn.com: Elon Musk settles fraud lawsuits over his $1 million giveaways to 2024 election voters | CNN Politics
• news.bloomberglaw.com: Elon Musk Settles Suit Over $1 Million Giveaway to 2024 Voters
• billionaires.africa: Elon Musk settles voter suits
• statesman.com: Elon Musk settles Austin lawsuit over $1 million voter giveaways

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.