On Friday, a federal judge in the United States rejected Elon Musk’s request to transfer a lawsuit in Pennsylvania to federal court, ruling that the case should be sent back to the state court for further proceedings.
Previously, a district attorney in Pennsylvania filed a lawsuit aimed at stopping Musk from daily awarding $1 million lottery prizes to swing state voters.
Federal District Court Judge Gerald Pappert of the Eastern District of Pennsylvania ruled on Friday to send Musk’s million-dollar prize case back to the state court in Philadelphia.
District Attorney Larry Krasner of Philadelphia filed a lawsuit on Monday in state court, accusing Musk and his created political action committee “America PAC” of engaging in behavior involving “illegal lotteries” by randomly distributing $1 million prizes to registered voters in battleground states. This was seen as an attempt to induce Pennsylvania residents to share personal data and influence voters in the presidential election.
Judge Angelo Foglietta of Pennsylvania held a court hearing on Thursday morning in Philadelphia, where Musk was absent and had his lawyer request the case be moved to federal court.
Musk’s move prompted Foglietta to put the lawsuit on hold, awaiting a decision from the federal court on whether to take up the case.
Krasner did not accuse Musk’s super PAC of violating federal laws by distributing large prize money, but questioned whether the lottery process was biased towards certain voters. His office called Musk’s motion to transfer the case a “ploy” aimed at gaining procedural advantages to avoid a preliminary injunction ruling and delay the process until Election Day.
However, Musk’s lawyers insisted that the lawsuit brought by Krasner involves issues of free speech and election interference, which fall under federal court jurisdiction. Additionally, the case meets the requirements for diversity jurisdiction, meaning that if the defendant and plaintiff are from different states and the disputed amount exceeds $75,000, federal court can hear the case.
But Pappert rejected these arguments in his ruling, stating that “federal question jurisdiction does not depend on the motivation of the plaintiff filing the lawsuit; it depends on whether the legal issues raised stem from federal law or state law.”
Pappert, a former Pennsylvania Attorney General and a Republican, was appointed as a federal judge by former Democratic President Obama.
Musk’s million-dollar prize activity falls into a gray area of US election law, with legal experts debating whether it violates federal laws prohibiting payments for voter registration.
Musk first handed a $1 million check to a attendee at a campaign event in Pennsylvania on October 19. Since then, the activity aimed at supporting former President and Republican 2024 presidential candidate Trump, as well as other Republican candidates, has continued. As of Friday, Musk’s America PAC has awarded $1 million prizes to 14 individuals, stating that the final prize will be awarded next Tuesday.