Elon Musk agrees to settle lawsuits over 2024 election lottery promotion, per report

Elon Musk has agreed to settle two lawsuits tied to a 2024 election-year “lottery” promotion that, according to plaintiffs, promised $1 million per day to people who signed a petition. The reported settlements involve proposed class actions that accused Musk and his America PAC of defrauding residents in closely contested states before the 2024 U.S. election.

The lawsuits, as described in the report, centered on claims that Musk and America PAC urged signatories to expect a daily $1 million payout, using a lottery-style pitch rather than a typical sweepstakes structure. Plaintiffs alleged that the offer amounted to deception that induced people to participate based on false expectations of receiving money.

According to the same account, the proposed class actions were filed after Musk made the promotion as part of his political activity connected to the 2024 election. The complaints sought classwide relief on behalf of residents in states that were described as closely contested.

The report says Musk and America PAC agreed to settle the matters, but it did not lay out the settlement terms in the information provided, including any payment amounts, release language, or the scope of any classwide resolution. It also did not specify the procedural posture in court, such as whether the cases will be dismissed with prejudice or how any remaining claims would be handled.

America PAC, a political action committee associated with Musk, was named alongside Musk in the allegations. The lawsuits framed the conduct as a scheme to induce participation by promising monetary prizes, while the defense position is not detailed in the provided reporting.

The reported settlement comes amid heightened scrutiny of political-adjacent promotions and the use of financial incentives during election seasons, including questions about advertising disclosures, consumer-protection standards, and the treatment of claims made through petition drives or other mass-distribution mechanisms.

If the settlements are finalized, the practical effect would be to resolve the specific proposed class actions brought on this theory in the states covered by the litigation, subject to whatever conditions the parties negotiate and whatever judicial approval is required.

Additional filings or court orders would typically be needed to confirm the final settlement terms and to clarify how class members are identified, notified, and compensated, if at all, under the agreement.