A U.S. judge on Friday rejected Elon Musk’s attempt to bring a Pennsylvania lawsuit over his $1 million voter prizes to federal court, moving the case back to state court.
It was not immediately clear whether the move would affect the billionaire’s plan to continue providing money until Tuesday’s U.S. presidential election.
The ruling was issued by U.S. District Judge Gerald Pappert in federal court in Philadelphia.
Musk distributed $1 million checks to randomly selected registered voters who sign a petition in support of free speech and gun rights.
As of Friday, Musk’s America PAC had awarded $1 million in prizes to 14 people and said the final prize would be awarded Tuesday.
Democratic Philadelphia District Attorney Lawrence Krasner on Monday sued Musk and his political action committee, which supports former Republican President Donald Trump, in state court to try to block the giveaway. Krasner called the program an illegal lottery.
Two days later, Tesla CEO Musk and his America PAC sought to take the case to federal court, arguing that Krasner’s lawsuit raised questions about free speech rights and interference electoral matters which come under the jurisdiction of the federal court. That prompted the state judge overseeing the case to put it on hold.
Saying the matter was for state court, Krasner called Musk’s maneuver an attempt to “wind the clock down to Election Day.” Krasner did not allege that the gift violated federal law.
Philadelphia is the largest city in Pennsylvania, one of seven battleground states likely to determine the outcome of the race between Trump and his Democratic opponent, Vice President Kamala Harris.
Musk’s offer is limited to registered voters in the seven states expected to decide the election: Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania and Wisconsin.
Musk distributed the first $1 million at an America PAC rally on Oct. 19 in Harrisburg, the state capital of Pennsylvania.
The gift falls into a gray area of election law, and legal experts are divided on whether Musk might violate federal laws prohibiting paying people to register to vote.
The U.S. Department of Justice warned America PAC that the giveaway could violate federal law, according to media reports, but federal prosecutors took no public action.
Musk has donated nearly $120 million to America PAC so far, according to federal information.
