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Judge rejects Elon Musk's attempt to take  million donation lawsuit to federal court, handing victory to Philadelphia district attorney
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Judge rejects Elon Musk's attempt to take $1 million donation lawsuit to federal court, handing victory to Philadelphia district attorney

PHILADELPHIA (WPVI) — A legal battle over Elon Musk's $1 million-a-day election raffle has returned to state court in Pennsylvania, a loss for the billionaire, after a federal judge said Friday that he lacked jurisdiction.

Philadelphia District Attorney Larry Krasner wants to continue his fight to stop the sweepstakes in state court, calling it a violation of state lottery laws. Musk had argued that the case belonged in federal court because it involved allegations of interference in the federal election.

Musk's political organization, which aims to boost Donald Trump's presidential campaign, organized the sweepstakes to encourage people to register to vote in key battleground states.

With just days until Tuesday's presidential election, the case now goes back to Judge Angelo Foglietta, who held a brief hearing Thursday in a courtroom at Philadelphia City Hall. A new hearing is scheduled for Monday morning.

Elon Musk did not show up for a hearing in a Philadelphia courtroom after the city's prosecutor filed a lawsuit to stop his $1 million donation.

U.S. District Judge Gerald J. Pappert, a Republican former Pennsylvania attorney general appointed to the federal bench by President Barack Obama, issued the ruling Friday.

“Defendants argue that the lawsuit's references to 'the upcoming federal presidential election' demonstrate that the lawsuit necessarily raises questions of federal law. However, jurisdiction over federal issues depends not on a plaintiff's motives for filing a lawsuit, but on whether the claims give rise to legal questions.” “Originated in federal or state law,” Pappert wrote.

John Summers, Esq., lead counsel for the Commonwealth in the matter, released the following statement following the decision:

“DA Krasner filed this case in a state court with jurisdiction to issue an injunction to stop the defendants’ lottery and their unfair and deceptive practices. Late the evening before the state court hearing was scheduled, the defendants filed suit. Hours later, we filed an emergency motion to remand the case to state court so that the state court could properly proceed with a hearing. A few moments ago, the Federal Court granted the urgent motion to remand, sending the case back to the state court. We are waiting for the state court hearing date.

Matthew Haverstick, a lawyer for Musk, did not immediately respond to text and phone messages seeking comment.

RELATED | Elon Musk is offering voters $1 million to sign a PAC petition supporting the Constitution, but is it legal?

Musk, who owns Tesla, SpaceX and his super PAC, which can raise and spend unlimited amounts of money, is taking over much of the effort to get Trump elected. He gave more than $70 million to the super PAC to help Trump and other Republicans win in November.

In his lawsuit filed Monday, Krasner accused Musk and his PAC of running a shady lottery in the tense run-up to Tuesday's election. Four of the first dozen winners appeared to be from Pennsylvania, perhaps the key prize in the tight presidential race between Trump and Vice President Kamala Harris.

“Is it just a coincidence that this is the state that has the most electoral votes? I don’t think so,” attorney John Summers argued Thursday.

From posts from Musk's America PAC on his and Michigan. The sweepstakes runs through Election Day and is open to registered voters in states close to the election who sign a petition supporting the Constitution.

2024 Voter Guide: What you need to know before Election Day in Pennsylvania, New Jersey and Del.

“You do things in the dark,” Summers told the judge. “We don’t know the rules that will be followed. We don’t know how they supposedly select people at random… This is a scandal.”

Election law experts have questioned whether it violates federal law prohibiting payments for votes. Musk viewed the money as both a prize and a reward for his work as the group's spokesman.

Krasner said he could still consider criminal charges because his job is to protect both lotteries and the integrity of elections.

Both Trump and Kamala Harris have made repeated visits to the state as they fight for Pennsylvania's 19 electoral votes, and both plan several more visits there through Tuesday.

The Associated Press contributed to this report.

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