A new federal lawsuit alleged that Tesla Inc.CEO Elon Musk's America PAC failed to compensate voters in swing states who were promised $100 for signing and referring others to sign a political petition.
What Happened: Last week, three voters from key swing states filed a proposed national class action lawsuit against Musk and his America PAC, accusing them of breaching a promise to pay petition signers in the run-up to the 2024 presidential election, reported Fortune.
In October 2024, the PAC offered $47—and later $100—to registered voters in seven states who signed a petition supporting the First and Second Amendments. Participants were also offered additional compensation for referring others.
"This case is about a broken promise," said attorney Shannon Liss-Riordan of Lichten & Liss-Riordan, the firm representing the plaintiffs. "Our clients relied on that promise because they believed in Elon, but unfortunately, that promise was not kept."
The lawsuit, filed in the Eastern District of Pennsylvania, claims that over 100 people may be owed a collective $5 million or more. One prior lawsuit by a Pennsylvania man alleged America PAC failed to pay him $20,000 in referral bonuses.
Why It's Important: America PAC, which reportedly raised over $200 million for Donald Trump's campaign, has previously denied wrongdoing, the report added.
Spokesperson Andrew Romeo in April told CNN, "America PAC is committed to paying for every legitimate petition signature… evidenced by the fact that we have paid tens of millions of dollars to canvassers for their hard work in support of our mission."
Tesla did not immediately respond to Benzinga's request for comments.
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