A federal judge has rejected Elon Musk's request to transfer a lawsuit regarding his $1 million voter prize initiative to federal court, resulting in the case being returned to state jurisdiction.
The ruling was issued by U.S. District Judge Gerald Pappert on Friday, and it remains uncertain how this decision will impact Musk’s ongoing plan to distribute the prize money in the lead-up to the U.S. presidential election on Tuesday.
Musk has been awarding $1 million checks to randomly selected registered voters who sign a petition advocating for free speech and gun rights. As of now, his political action committee, America PAC, has awarded these prizes to 14 recipients, with the final prize scheduled for distribution on election day.
The legal challenge was brought forth by Lawrence Krasner, the District Attorney of Philadelphia, who filed a lawsuit on October 28 in state court to halt the prize program, labeling it an illegal lottery. Krasner contended that Musk's initiative contravenes state law.
Following the lawsuit, Musk's team sought to move the case to federal court, arguing that it raised significant issues regarding free speech and potential election interference. This led to a temporary pause by the state judge overseeing the case.
Krasner accused Musk of attempting to "run the clock until Election Day" with his legal maneuver, emphasizing that his lawsuit did not claim the program violated federal laws.
Philadelphia, the largest city in Pennsylvania, is one of several battleground states that could play a crucial role in determining the outcome of the presidential race between former President Donald Trump and his Democratic opponent, Vice President Kamala Harris.
Musk’s voter incentive program is available to registered voters in seven key states anticipated to influence the election: Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, and Wisconsin.
The first $1 million was awarded at a rally in Harrisburg, Pennsylvania's capital, on October 19. Legal experts have raised concerns about the program’s compliance with election laws, and while the U.S. Department of Justice reportedly warned America PAC about potential legal violations, there has been no public action from federal prosecutors regarding the matter. Musk has reportedly contributed nearly $120 million to America PAC as per federal disclosures.
