Elon Musk agrees to settle class action over predetermining winners of $1 million daily 2024 election lottery

Altogether, 18 people received the $1 million payout during the run-up to Election Day in 2024 as the sweepstakes played out daily across battleground states, according to a report by the Austin American-Statesman.

Billionaire entrepreneur Elon Musk and his political action committee, America PAC, have agreed to settle two proposed class-action lawsuits accusing them of defrauding voters across key battleground states ahead of the 2024 US presidential election, according to a Reuters report.

The plaintiffs had alleged that Musk and his committee misled registered voters with a promised lottery-style $1 million daily giveaway to drum up signatures for a petition backing the US Constitution.

The plaintiffs, along with legal counsel for Musk and America PAC, notified the federal court in Austin, Texas, on Thursday that they have struck settlements to end the litigation, subject to final court approval.

Court filings did not disclose the financial or non-financial terms of the settlement, and attorneys representing the parties either declined to comment or did not immediately respond to requests for details, Forbes reported.

Core Allegations

The dual lawsuits, spearheaded by Arizona residents, claimed that Musk and America PAC induced voters in seven crucial swing states—Pennsylvania, Georgia, Nevada, Arizona, Michigan, Wisconsin, and North Carolina—into signing the petition by pitching a daily $1 million prize awarded to randomly selected participants.

Plaintiffs argued that the lottery setup was deceptive, contending that winners were not randomly drawn from a pool of signatories. Musk and America PAC had previously denied all allegations of wrongdoing.

The settlement averts what could have been high-stakes legal proceedings for the billionaire. A federal judge had ruled in June that Musk would be required to testify in the lawsuits.

18 Winners

Altogether, 18 people received the $1 million payout during the run-up to Election Day in 2024 as the sweepstakes played out daily across battleground states, according to a report by the Austin American-Statesman.

Musk established America PAC to back Republican Donald Trump’s successful 2024 White House bid. He deployed well over $200 million to support Trump via America PAC and another affiliated committee.

The $1 million daily sweepstakes, rolled out just weeks before the election, immediately drew intense legal scrutiny. Election law scholars argued the scheme appeared to test or violate federal statutes prohibiting payments or offers of payment to register to vote or cast a ballot.

In defence of the payouts, Musk’s representatives argued that the recipients were vetted and chosen to serve as paid spokespeople for America PAC, with the $1 million designated as compensation rather than a random lottery win.

The US Department of Justice had also warned America PAC that the sweepstakes could run afoul of federal law, where potential penalties include fines of up to $10,000 and prison sentences of up to five years.

Political Spending Footprint

Musk, who has continued to inject substantial capital into Republican politics—including over $275 million dedicated to the 2026 US midterm election cycle—remains the central financial heavyweight in American conservative campaigning.

According to Forbes' valuation metrics, Musk has an estimated net worth of $924.8 billion, retaining his position as the world’s wealthiest individual after repeatedly crossing and hovering near the historic $1-trillion threshold.

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