close
close

Yiamastaverna

Trusted News & Timely Insights

Michigan lawyer sues Elon Musk, claiming  million giveaway was fraud
Massachusetts

Michigan lawyer sues Elon Musk, claiming $1 million giveaway was fraud

A Michigan lawyer has sued billionaire Tesla CEO Elon Musk for allegedly fraudulently tricking people into signing a petition to win $1 million.

The lawsuit, filed Tuesday in the U.S. District Court for the Western District of Michigan, alleged that Musk’s political action committee’s lottery to win $1 million was never truly random and The money reportedly only went to former President Donald Trump’s supporters who were willing to be spokespeople for Musk’s political action committee called The America PAC.

An NBC investigation found that nearly 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 is supporting Democratic Vice President Kamala Harris’ presidential bid, wrote in his lawsuit that Musk “never intended to award the $1 million arbitrarily.” 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 intended to increase interest in their petition and the subject and theme of their support for the Republican presidential candidate,” Alvarez wrote. “Their incentive was aimed at registered voters in swing states with the intent of increasing support for their chosen candidate specifically in those states.”

America PAC could not immediately be reached for comment.

The Philadelphia city attorney tried to block the $1 million donation in Pennsylvania, but Common Pleas Court Judge Angelo Foglietta denied Larry Krasner’s request to have the PAC stop contributing the money give away. According to the Washington Post, he did not immediately explain his sentence.

Philadelphia District Attorney Krasner filed a lawsuit against Musk and his PAC last month, claiming the giveaways violated state laws regulating lotteries and protecting consumers, according to The Washington Post. According to Reuters, Musk’s lawyers argued on Monday that the raffle did not violate the law because the recipients were not random sweepstakes winners and were selected as paid speakers for the PAC.

To be eligible to win, Musk said participants must be registered voters from a battleground state that supports the First and Second Amendments.

Alvarez signed the petition on October 29 and wrote that he believes that even if the odds are stacked against him, there is still a chance he could win.

On Monday, however, he learned through news reports that Musk and his lawyers had told Foglietta that the award of the money was not random and predetermined. They said the winners were not selected at random, there was no prize to be won and the $1 million payment was compensation for serving as spokesperson for the pro-Trump super PAC, the lawsuit says . The winners were supposedly hand-picked based on their personal stories and had to “earn” the money to become PAC speakers.

“A closer look at the recipients of the $1 million prize reveals a clear pattern: Not only is the selection not random, but it is a targeted process that excludes anyone who is not a Republican or vocal supporter of Donald Trump,” Alvarez wrote the lawsuit.

Alvarez alleged breach of contract, silent fraud and civil conspiracy. He sought $1 million in damages.

[email protected]

LEAVE A RESPONSE

Your email address will not be published. Required fields are marked *