A Michigan attorney has sued billionaire and Tesla co-founder Elon Musk for allegedly fraudulently inducing people to sign a petition for a chance to win $1 million.
The lawsuit, filed Tuesday in the United States District Court for the Western District of Michigan, alleged that Musk’s political action committee’s lottery to win $1 million was never actually random, and the money allegedly went only to the supporters of former President Donald Trump who were willing to be spokespeople for Musk’s political action committee known as The America PAC.
A NBC investigation found that almost all of the 14 winners were registered Republicans or appeared to be Republican-leaning. Musk is an outspoken supporter of Trump.
Attorney Robert Alvarez, a Kent County man who supports Democratic Vice President Kamala Harris for president, wrote in his lawsuit that Musk “never had any intention of awarding the $1 million randomly.” Alvarez said he and many others who filled out the petition had no chance of winning.
“Musk and the PAC’s false and misleading representations were meant to inflate the interest in their petition and the subject and theme of its support for the Republican candidate for President,” Alvarez wrote. “Their inducement was targeted to registered voters in swing states with the intent that it would inflate support for their chosen candidate in those states specifically.”
The America PAC couldn’t immediately be reached for comment.
The Philadelphia city attorney attempted to block the $1 million giveaway in Pennsylvania, but Common Pleas Court Judge Angelo Foglietta rejected Larry Krasner’s request to make the PAC stop giving away the money. He did not immediately explain his ruling, according to the Washington Post.
Philadelphia District Attorney Krasner filed a lawsuit last month against Musk and his PAC, alleging the giveaways violated state laws regulating lotteries and protecting consumers, according to the Washington Post. Musk’s attorneys argued Monday that the giveaway did not violate the law because the recipients were not random sweepstakes winners and were selected to be paid spokespeople for the PAC, according to Reuters.
To be eligible to win, Musk said contestants must be registered voters from a battleground state who supported the First and Second amendments.
Alvarez signed the petition Oct. 29 and wrote he believed while the odds were not favorable, there was still a chance he could win.
But he learned Monday through news reporting that Musk and his attorneys told Foglietta that the awarding of the money was not random and was predetermined. They said the winners weren’t chosen by chance, there was no prize to be won and the $1 million payment was compensation for serving as a spokesperson for the pro-Trump super PAC, according to the lawsuit. The winners were allegedly handpicked based on their personal stories and had to “earn” the money to be PAC spokespeople.
“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,” Alvarez wrote in the lawsuit.
Alvarez alleged breach of contract, silent fraud and civil conspiracy. He asked for damages in the amount of $1 million.
kberg@detroitnews.com
