Elon Musk Sued for Fraud, Breach of Contract Over $1 Million Giveaway Stipulations

While Tuesday was overall a good day for Elon Musk as his fellow celebrity Donald Trump won the 2024 Presidential Election, it wasn’t without its complications for the world’s richest man.

That’s because a new pair of lawsuits filed against the Tesla billionaire — one in Michigan and one in Texas — allege that Musk’s $1 million per day giveaway was actually one giant fraud scheme. This comes after the America PAC admitted it did not actually choose its swing state winners at random, but rather pre-selected petition signers based on their personal stories … and perhaps their political affiliations, per the docs.

Robert Anthony Alvarez of Michigan and Jacqueline McAferty of Arizona (though filed in Texas) now accuse Musk and the America PAC of committing fraud and breach of contract. The former seeks $1 million in damages, while the latter demands injunctive relief and a jury trial for her class action suit.

Per the lawsuits, obtained by TheWrap, the ‘Petition in Favor of Free Speech and the Right to Bear Arms’ was crafted in October and offered $47 for each registered voter referral who signed. Additionally, it was publicized that one registered voter who signed from Pennsylvania, Georgia, Nevada, Arizona, Michigan, Wisconsin or North Carolina would be randomly selected to win $1 million per day, regardless of political party.

“We really want to get as many people as possible to sign this petition, so I have a surprise for you,” Musk said when announcing the incentive program on Oct. 19. “And it’s that we’ll be awarding $1 million dollars, randomly, to people who have signed the petition. Every day from now until the election.”

While the Pennsylvania District Attorney initially tried to block the contest as voter interference, a judge subsequently ruled it would be allowed to continue. On Monday, Musk lawyer Chris Gober even admitted in court that they weren’t picking winners “by chance,” and therefore were not violating any laws: “There is no prize to be won, instead recipients must fulfill contractual obligations to serve as a spokesperson for the Pac.”

A day later, Alvarez and McAferty are now asking a judge to determine whether that distinction instead constitutes as fraud — especially since signees had to give their personal information to enter and winners were supposedly forced to sign NDAs.

“Musk and the PAC concealed the true nature of the opportunity, method in which the winners would be selected and the terms/conditions under which Alvarez, if selected, would be awarded the $1 million,” Alvarez’s lawsuit states. “Musk and the PAC’s fraudulent conduct was intentional, willful, and designed to deceive Alvarez and others into participating in their program under false pretenses.”

It continues, “A closer look at the recipients of the $1 million prize show a clear pattern: that the selection not only is not random, but is a targeted process that eliminates anyone who is not a Republican or vocal supporter of Donald Trump.”

“Defendants’ representations were false because they have since admitted that the winners were pre-determined,” McAferty’s added. “Defendants knew their representations were false at the time they were made; Defendants have continued to promote the petition as a chance to win $1,000,000 ‘randomly’ while simultaneously choosing winners based on selective, pre-determined criteria.”

Regardless of the outcome, the giveaway is now over as of Election Day. Musk did not immediately respond to TheWrap’s request for comment.

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