Musk Loses Bid To Move $1M Sweepstakes Lawsuit To Federal Court

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On Friday, a judge turned down Elon Musk’s bid to shift a lawsuit over his $1 million daily sweepstakes to federal court.
Philadelphia’ Democrat District Attorney Larry Krasner is challenging these giveaways to voters in key battleground states.

On Monday, Krasner sued Musk and his pro-Trump America PAC to put a halt to the sweepstakes. He claimed the $1 million daily giveaways violated Pennsylvania’s “illegal lottery” laws.

Musk asked to move the case to federal court on Wednesday night, claiming it barely touches on state issues like “nuisance and consumer protection” raised by Krasner.

Musk’s legal team accused Krasner of rushing to stop to the America PAC’s mission to give away a million dollars daily to American’s who sign their petition.

“Viewed properly, the Notice of Removal is a stunt to obtain a procedural advantage to avoid a ruling on the Preliminary Injunction and run the clock until election day,” Krasner’s office rebutted.

The tech mogul managed to postpone a Thursday hearing where his presence was mandatory by attempting to change courts.

“The District Attorney wants this litigation to be a rushed stage play, and the attendant spectacle and attention that go with it. But this lawsuit belongs in federal court, where it can be decided soberly and in a deliberate fashion,” Musk’s team argued.

Musk’s attorneys argued for federal court by linking the dispute to federal law questions tied to the upcoming presidential election, or alternatively, through diversity jurisdiction since the involved parties are from different states with controversy exceeding $75,000.

The judge dismissed both claims, seeing no federal law needed for resolving the lawsuit.

“Federal question jurisdiction does not turn on a plaintiff’s motivations in filing suit; it turns on whether the legal issues arising from the claims originate in federal or state law,” Pappert said.

Judge Gerald Pappert ruled the lawsuit should stay in state court, backing the district attorney’s stance and allowing the hearing to continue.

Shortly after, Musk’s lawyers requested the state judge to cancel his required attendance.

America PAC kicked off the sweepstakes in late October, limited to registered voters in seven key states, including Pennsylvania, who signed the PAC’s petition on free speech and gun rights.