Elon Musk Faces Class Action Lawsuit Over $1 Million-a-Day Giveaway Fraud Allegations

A lawsuit has been filed against Elon Musk in Texas, alleging fraud in his petition-based $1 million-a-day giveaway. The plaintiff claims the initiative misled voters and gathered their data for profit. The legal action follows a rejected bid to halt the giveaway, labelled an illegal lottery.

Elon Musk, the billionaire entrepreneur, is facing a proposed class action lawsuit in Texas, brought by registered voters who participated in his $1 million-a-day giveaway. The lawsuit, led by Arizona resident Jacqueline McAferty, alleges that Musk's organization falsely promised randomly selected winners, while actually predetermining them.

The complaint further accuses Musk of using the giveaway to drive traffic to his X social media platform and collect personal information from participants, potentially for sale. This suit was filed shortly after a Philadelphia judge denied a separate request to terminate the giveaway, which had been criticized as an illegal lottery.

Musk's initiative involved voters from seven key battleground states, encouraging them to support constitutional rights. The lawsuit seeks at least $5 million in damages, while Musk has supported Republican Donald Trump in the current presidential race against Democrat Kamala Harris.

(With inputs from agencies.)