Elon Musk and his America Pac political action committee said recently that they agreed to settle two proposed class actions alleging the billionaire entrepreneur defrauded residents in closely contested states before the 2024 US election by promising voters a lottery-style daily $1m giveaway. This was reported by Qazaqyia.kz citing The Guardian.
The plaintiffs, Musk and America Pac told the judge overseeing the two related lawsuits in federal court in Austin, Texas, on Thursday that they have reached settlements subject to court approval.
The filings did not include settlement terms, and lawyers involved in the case declined to comment or did not respond to requests for more information.
The plaintiffs in the two cases are Arizona residents who said Musk and America Pac misled voters in seven swing states into signing his petition to support the US constitution by promising $1m daily to randomly selected signatories.
Musk founded America Pac to support Donald Trump as he successfully ran in November 2024 for a second US presidency.
A federal judge in June said Musk – the CEO of Tesla and SpaceX as well as the owner of the social media platform X – must testify in the lawsuits.
Previously, during the 2024 election campaign, Musk announced that he would give away $1m daily among voters who signed the petition. This promise caused widespread resonance and questions about its legality.
Thus, Musk and America Pac, by reaching a pre-trial settlement, seek to avoid a lengthy court process. However, the terms of the agreement are still unknown, and until the court approves it, the case will not be officially closed.
This incident is seen as part of legal disputes surrounding the billionaire's political activity and his role in the election campaign. Musk's support for Trump through America Pac and his promises to voters had already been criticized.
How the trial will proceed further and what the specific terms of the agreement are is still unknown. But the parties' reaching an agreement indicates that the case may be completed without a court decision.