Elon Musk, PAC, sues Philadelphia district attorney over voter lottery

Philadelphia prosecutors filed a lawsuit Monday to stop Elon Musk and his political action committee from giving $1 million to registered voters in swing states, accusing them of “operating an illegal lottery.”

Attorney General Larry Krasner's lawsuit accusing Musk and his America PAC of trying to influence voters in the presidential election comes days after the U.S. Department of Justice warned America PAC that its daily sweepstakes of $1,000 $1 million could violate federal election law.

Krasner's lawsuit names both Tesla CEO Musk and America PAC as defendants.

Musk is supporting Republican candidate Donald Trump in the presidential election against Democratic candidate Kamala Harris. CNBC has reached out to Musk for comment.

A court hearing was scheduled for Friday morning in Philadelphia on Krasner's request for a temporary restraining order against Musk and the PAC that would prevent them from continuing daily giving.

“America PAC and Elon Musk operate an illegal lottery in Philadelphia (as well as throughout Pennsylvania),” the lawsuit in the Philadelphia County Court of Common Pleas states.

The lawsuit notes that Musk announced at a campaign rally on October 19 that a registered voter would be eligible to vote if they provided personal identification information – address, cell phone and email address – and a petition in support of the Constitution will sign at random for a prize of $1 million.

“In other words, America PAC and Musk are luring citizens of Philadelphia – and others in the Commonwealth (and other swing states in the upcoming election) – to give up their personal identification information and make a political pledge in exchange for the chance to win a dollar to win millions,” the lawsuit says.

“This is a lottery,” the lawsuit says. “And it is undeniably an illegal lottery.”

The lawsuit states that Pennsylvania law requires all lotteries in that state to be regulated by the state.

Musk's lottery also violated Pennsylvania's consumer protection law by making “deceptive, vague or misleading statements that create a risk of confusion or misunderstanding,” the lawsuit says.

Krasner said in a statement Monday: “The Philadelphia District Attorney is charged with protecting the public from public nuisances and unfair trade practices, including illegal lotteries.”

“The prosecutor’s office is also tasked with protecting the public from interference with the integrity of elections,” Krasner said.

Earlier this year, America PAC was briefly investigated by the North Carolina Attorney General's Office and the Michigan Secretary of State's Office after CNBC revealed that the company was collecting personal contact information from swing state voters under the false pretense of helping them register to help vote.

In response to the requests, the PAC told state officials that it would fix several dead-end links on its website.

Additional reporting from CNBC Kevin Breuninger