Lawsuit Against Elon Musk's $1 Million Voter Giveaway Heads Back To State Court

In his face-off against Elon Musk, Philadelphia District Attorney Larry Krasner has already earned at least one important win.

A judge on Friday granted Krasner’s request to keep a civil lawsuit he filed against Musk and Musk’s pro-Trump America PAC in state court, rather than having it moved to federal court as the tech billionaire wished.

Musk, for his part, filed a motion seeking to quash any personal appearance he is ordered to make in court, saying that his attendance is unnecessary because the case is largely focused on actions of America PAC.

Earlier Friday morning, Musk had accused Krasner of engaging in a “rushed stage play” and a “spectacle” as he urged a federal judge to deny Krasner’s emergency request to keep the suit in state court.

Krasner sued the billionaire and his pro-Donald Trump America PAC over their pledge to give away $1 million daily to registered voters. Musk claims the giveaway is random, but Krasner alleges that Musk is intentionally targeting people in battleground states with an “illegal lottery scheme” meant to influence voters.

Musk has argued that Krasner must square off with America PAC attorneys in federal court because the lawsuit raises questions about a federal election and the federal laws that govern political action committees, not state matters.

Krasner is adamant that his lawsuit isn’t about whether Musk and America PAC are violating federal laws that ban vote-buying. Rather, the district attorney wants a state court, not a federal one, to determine whether the program violates Pennsylvania’s prohibitions against illegal lotteries.

Attorneys for Musk’s PAC filed a notice in the Eastern District of Pennsylvania federal court this week requesting to have the case remanded there. Explaining this maneuver in a brief filed Friday, a lawyer for the PAC wrote that the group’s expenditures are “political speech” and thus “entitled to First Amendment protections,” which is a federal jurisdictional issue.

But U.S. District Judge Gerald Pappert disagreed.

Musk and America PAC “have not identified any question of federal law that must be resolved in Plaintiff’s favor in order to prove either state-law claim,” Pappert’s memorandum states.

“Defendants argue the Complaint’s references to ‘the forthcoming Federal Presidential Election’ show the lawsuit necessarily raises questions of federal law,” Pappert wrote. “But federal question jurisdiction does not turn on a plaintiff’s motivations in filing suit; it turns on whether the legal issues arising from the claims originate in federal or state law.”

The ploy to have the lawsuit remanded to federal court may have been a boon for Musk anyway. The giveaway ends on Nov. 5, meaning that by the time the courts decide the next steps, the initiative will already be over.

The Justice Department warned Musk in a letter last month that he may run afoul of federal election laws against compensating voters, but Musk was undeterred.

Four giveaway winners are from Pennsylvania, a crucial swing state, according to a website for the program. So far, the PAC has given away a total of $14 million to voters who signed the petition that states they agree to support the First and Second Amendments. The website indicates that winners will be declared through Nov. 5. As of Friday, the site specified that those winners would be selected in Arizona and Wisconsin, which are also battleground states in the 2024 election.

Musk and Krasner were initially meant to face off in court on Friday, but the hearing was brought forward to Thursday. Krasner had asked to move the hearing to a more secure venue following a deluge of threats he said he received.

The DA accused Musk of amplifying inflammatory posts about him and the lawsuit on X, the social media platform Musk owns. In court records, Krasner showed Musk’s reposts from a user on X who claimed the DA knew his lawsuit wasn’t legal but “wants a leftist judge to stop it before Election Day.” Other users on the platform have threatened to come to Krasner’s house in masks and harass him.

Musk himself was a no-show at the hearing, sending his lawyers in his stead.

Attorneys for Krasner, Musk and America PAC did not immediately respond to HuffPost’s request for comment.

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