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Elon Musk's $1M voter lottery lawsuit sent back to state court


Elon Musk's M voter lottery lawsuit sent back to state court

Elon Musk, Tesla CEO and

Rachel Wisniewski | Reuters

A Pennsylvania federal judge on Friday sent a lawsuit against billionaire Elon Musk and his political action committee back to state court over their $1 million daily donations to registered voters.

Philadelphia District Attorney Larry Krasner's request to bar Musk and his America PAC from giving out more awards to voters in Pennsylvania will be heard by a judge in the Philadelphia County Court of Common Pleas on Monday morning, according to a filing.

A hearing on Krasner's motion began Thursday morning in state court. But the hearing soon ended after a judge there said Musk's transfer of the case to federal court prevented any action in state court.

Krasner accuses Musk and the PAC of running an illegal lottery and trying to influence voters in the presidential election between Donald Trump and Kamala Harris.

The lawsuit also accuses Musk and the PAC supporting Trump of violating state consumer protection laws.

U.S. District Judge Gerald Pappert, in his decision Friday to send the case back to the Court of Common Pleas, rejected arguments from Musk's lawyers that the lawsuit should be heard in federal court in Philadelphia because it relates to the upcoming presidential election.

“But federal question jurisdiction does not depend on a plaintiff’s motives for bringing a lawsuit; What matters is whether the legal issues arising from the claims originate in federal or state law,” wrote Pappert, who was appointed by former President Barack Obama.

Pappert said the defendants had identified “no question of federal law” that needed to be resolved in favor of the prosecution “to prove a claim under state law.”

Philadelphia District Attorney Larry Krasner is available to the media on the day of Elon Musk's hearing in a lawsuit filed by the Philadelphia District Attorney seeking to block Donald Trump supporter Musk's $1 million a day donation to swing voters at Philadelphia City Hall. Pennsylvania, USA, October 31, 2024.

Matthew Hatcher | Reuters

Krasner's office said in a statement Friday: “This decision is consistent with the District Attorney's argument that last-hour efforts by America PAC and Mr. Musk to withdraw the case from state court in Philadelphia were unlawful.”

CNBC has reached out to an attorney for Musk and America PAC for comment.

Musk said on October 19 that the PAC would randomly award $1 million per day until Election Day to registered voters in one of seven swing states – including Pennsylvania – who had signed a petition supporting the U.S. Constitution . The first three honorees came from Pennsylvania.

After being sued by Krasner in the Court of Common Pleas on Monday, Musk was ordered to appear in that state court on Thursday morning for an emergency hearing, where a judge planned to consider Krasner's request for an injunction to stop the lottery in Pennsylvania.

But on Wednesday evening, attorneys for Musk and the PAC filed a notice in federal court withdrawing the lawsuit.

On Thursday morning, after Musk failed to appear at his hearing, Court of Common Pleas Judge Angelo Foglietta said the case could not proceed, at least for now, because of the move to federal court.

Summers hours later asked Pappert to return the case from federal court.

Musk's attorney, Matthew Haverstick, filed a motion Friday asking Foglietta to vacate the order that Musk appear in person when a hearing on Krasner's request for a preliminary injunction resumes.

“His presence is now required only to harass and oppress,” Haverstick wrote in the motion.

“Plaintiff seeks to harass and unlawfully sideline Defendant Musk in the final days before a closely contested presidential election,” the attorney wrote. “To say this is inappropriate would be a gross understatement. The attempt to impede Defendant Musk from exercising his First Amendment rights is absolutely unconstitutional coming from a government official.”

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