Elon Musk faces consistent court rulings in the coming days and weeks, as one judge weighs the legality of his multimillion-dollar election contest while another decides whether the Tesla (TSLA) CEO will get back a $56 billion compensation package.
Musk is used to fighting business battles in court. But on Monday, it was his recent foray into presidential politics on behalf of Republican nominee Donald Trump that put him on the defensive.
During a hearing in a Pennsylvania state court, attorneys for Musk argued that a series of $1 million giveaways tied to Musk’s pro-Trump political action committee, America PAC, did not violate state gambling and public nuisance laws, as alleged by Philadelphia District Attorney Larry. Krasner.
Krasner, a Democrat, filed suit against Musk and his America PAC on Oct. 28, claiming the sweepstakes amounted to an “illegal lottery.” He asked the court for an urgent hearing to prevent the defendants from engaging in unfair or deceptive acts or practices.
The sweepstakes, which Musk unveiled in October, offer registered swing state voters the chance to win $1 million in exchange for their email and other personal information and a pledge to protect free speech and the right to bear arms. wear to support.
When Musk announced the petition on October 19, he said: “We’re going to award $1 million every day from now until the election to – randomly – people who have signed the petition.”
An attorney for Musk argued in court Monday that the giveaways did not amount to a lottery because the $1 million winners were not chosen at random. Instead, the lawyer said, they were chosen for their potential as spokespeople for America PAC’s agenda, according to a report from New York Times reporter Teddy Schleifer.
Before the hearing, Chris Gober, an attorney for Musk and America PAC, characterized Krasner’s lawsuit as a partisan agenda masquerading as legal arguments.
The case ended up in the Court of Common Pleas in Pennsylvania after a federal district court judge disagreed with Musk’s claim that the case belonged in federal court.
On Monday, America PAC said it had awarded 16 separate $1 million prizes to voters in Pennsylvania, Georgia, Nevada, Arizona, Michigan, Wisconsin and North Carolina, and planned to award two more.
Musk faces another legal showdown in Delaware, where the judge who invalidated Musk’s $56 billion compensation package earlier this year is about to decide whether he will be entitled to that money back.
Tesla is asking Kathaleen McCormick, chief judge of the Delaware Chancery Court, to overturn her decision and replace it with the will of the company’s shareholders, who approved the reward for a second time in June.
