Elon Musk has settled a class action lawsuit that accused his political action committee, America PAC, of fraud during the 2024 presidential election. The suit alleged that the PAC falsely informed supporters of Donald Trump that they had a chance to win $1 million, when in fact, the winners were predetermined.
A court filing on Thursday indicated that the parties involved have reached a settlement and requested a 30-day stay in proceedings to finalize the agreement and submit it for preliminary court approval.
America PAC was established by Musk approximately one month before the election. The PAC targeted Trump supporters in key battleground states, soliciting personal identifying information and online petition signatures in exchange for a purported chance to win $1 million. This was presented as a way to support "free speech and the right to bear arms."
Previously, a Pennsylvania judge had allowed the payouts to continue after attorneys for Musk's PAC argued that the program was not a lottery because winners were selected based on their suitability to serve as spokespeople for the PAC and received the $1 million as payment. This contradicted earlier accusations, including those from Philadelphia District Attorney Larry Krasner, who had characterized the scheme as an illegal lottery.
Following the election, multiple lawsuits were filed against Musk. One plaintiff, Joy Havrick of Arizona, claimed she was used as a "marketing prop" and would not have provided her personal information if she had known the lottery was not random or that her selection depended on her perceived favorability to the PAC. Attorney Mark Bankston, who represented Havrick, declined to comment on the settlement.
Details regarding the settlement amount and other terms have not yet been disclosed. A lawyer for Musk did not immediately respond to requests for comment.