Federal judge sends Philadelphia DA's lawsuit against America PAC, Elon Musk, back to state court

PHILADELPHIA – A federal judge has sent a lawsuit filed by the Philadelphia District Attorney’s Office against America PAC and Elon Musk back to state court in Philadelphia, rejecting the defendants’ attempt to move the case to federal court. The lawsuit, which aims to stop a lottery between the PAC and Musk, will now proceed under Pennsylvania state law.

The Philadelphia DA’s Office filed the case in state court, claiming the lottery involves unfair and deceptive practices. Just hours before a scheduled hearing in state court, America PAC and Musk’s legal team filed to transfer the case to federal court, prompting the Attorney General’s Office to respond with an emergency motion to send the case back to the jurisdiction of the state. The federal court granted that request, allowing the state court to retain jurisdiction over the case.

“DA Krasner has filed this state lawsuit in state court, which has jurisdiction to issue an injunction to stop the defendants’ lottery and the defendants’ unfair and deceptive practices,” said John Summers, chief counsel for the Commonwealth. “We are waiting for the state court hearing to be scheduled.”

The Philadelphia District Attorney’s Office argued that the late effort to move the case to federal court was inappropriate and would have delayed the state-level proceeding. With the federal court decision, the lawsuit is now expected to move more quickly in the state court system, where prosecutors will pursue an injunction against America PAC and Musk.