Stock Markets June 25, 2026 03:49 PM

Judge Orders Elon Musk to Testify in Two Class Actions Over Election Giveaway

Magistrate recommends fraud claim proceed in one suit while a breach of contract count is urged to be dismissed; district judge to review

By Maya Rios
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A U.S. magistrate judge in Austin has ordered Elon Musk to give sworn testimony in two proposed class-action lawsuits that accuse him and his political action committee, America PAC, of misleading voters in seven swing states by promising a $1 million-per-day giveaway ahead of the 2024 election. The magistrate recommended that a claim alleging voters were induced to supply personal identifying information move forward, while a related breach of contract allegation be dismissed. A district judge will review the recommendations and decide pending motions to dismiss.

Judge Orders Elon Musk to Testify in Two Class Actions Over Election Giveaway
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Key Points

  • A U.S. magistrate judge in Austin ordered Elon Musk to testify under oath in two proposed class actions alleging deceptive promotion of a $1 million-per-day giveaway tied to political outreach.
  • The magistrate recommended that a claim alleging voters were induced to provide personal identifying information proceed in one lawsuit, while recommending dismissal of a related breach of contract claim.
  • The litigation references America PAC's role in promoting the giveaway, Musk's October announcement at a Pennsylvania town hall, and testimony from America PAC Director Christopher Young expressing surprise at Musk's description of payouts as "randomly." Sectors with potential market interest include technology firms associated with Musk and entities tied to political donations and organizing.

A federal magistrate judge in Austin, Texas has directed Elon Musk to testify under oath in connection with two proposed class actions alleging he defrauded voters in several swing states by promoting a $1 million-per-day giveaway tied to his political outreach before the 2024 election.

In a written ruling issued Thursday, U.S. Magistrate Judge Susan Hightower recommended that one of the suits include a claim that Musk and his political action committee, America PAC, misled people into providing personal identifying information as part of the giveaway. At the same time, Hightower said a related breach of contract claim should be dismissed.

The two lawsuits were filed by Arizona residents Joy Harvick and Jacqueline McAferty, who say Musk and America PAC used promises that the recipients of the $1 million awards would be chosen "randomly" to persuade voters across seven swing states to sign a petition supporting the U.S. Constitution. The plaintiffs contend that voters were given no genuine chance of winning and point to a Musk lawyer's statement that the 18 winners were selected because they might serve as effective spokespeople for America PAC.

Hightower noted it remains an open question whether Musk spoke recklessly when describing the payouts as "randomly." The magistrate cited testimony from America PAC Director Christopher Young in a February 2026 deposition, in which he said he was "surprised" at Musk's use of that term and that the choice of words did not align with discussions held with legal counsel and others about how the program would be run.

"It was not the way that we had - you know, with legal counsel and consultation, discussed the program and how it would run," Young testified, according to Hightower's recommendation.

Hightower's recommendations will be reviewed by U.S. District Judge Robert Pitman in Austin. Separately, Musk and America PAC have asked Pitman to dismiss Harvick's lawsuit; Pitman is scheduled to decide that motion himself.

The filings note that Musk founded America PAC to support Republican Donald Trump's 2024 presidential campaign, and that he publicly announced the giveaway at a Pennsylvania town hall in October. The lawsuits seek to represent broader groups of voters who say they were misled by the promotional statements tied to the petition and the giveaway.

Musk's attorneys did not immediately respond to requests for comment. Attorneys for the plaintiffs in both suits either did not immediately respond to similar requests or declined to comment.


Legal posture and next steps

With Hightower's recommendation that one fraud-related claim survive initial dismissal, the litigation will proceed to further discovery phases that may include Musk's sworn testimony. The district court's rulings on the magistrate's recommendations and on the motion to dismiss in Harvick's case will determine the scope of claims that advance.

Risks

  • Outcome uncertainty - The district judge will review the magistrate's recommendations and decide motions to dismiss, creating uncertainty about which claims will ultimately proceed and how extensive discovery will be.
  • Reputational and legal exposure - Continued litigation and potential testimony may increase legal and public scrutiny of Musk and America PAC, which could have indirect effects on businesses associated with him.
  • Operational impact on related entities - If the cases progress, time and resources devoted to legal defense could affect management focus at companies linked to the defendant, with potential market attention on those firms.

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