Elon Musk PAC faces legal action from Philadelphia DA to halt $1 million lottery for voters.

• The Elon Musk-controlled political action committee is being sued by the Philadelphia District Attorney's Office to prevent it from distributing $1 million to registered voters in swing states.
• The lawsuit by DA Larry Krasner was filed following the U.S. Department of Justice's warning to Musk's America PAC about the potential violation of federal election law due to its $1 million sweepstakes.
• Elon Musk is supporting Donald Trump, the Republican nominee, in the presidential election, while opposing Kamala Harris, the Democratic nominee.

The District Attorney's Office in Philadelphia filed a lawsuit against a political action committee controlled by Elon Musk, alleging that the committee was operating an illegal lottery by awarding $1 million to registered voters in swing states.

The lawsuit by DA Larry Krasner against Musk and his American PAC for attempting to influence voters in the presidential election was filed after the U.S. Department of Justice warned the PAC that its $1 million daily sweepstakes could potentially violate federal election law.

In Philadelphia County Court of Common Pleas, a lawsuit has been filed by Krasner against both CEO Musk and America PAC as defendants.

Elon Musk is supporting Donald Trump, the Republican nominee, in the presidential election, while opposing Kamala Harris, the Democratic nominee.

The suit alleges that America PAC and Elon Musk are operating an unlawful lottery in Philadelphia and across Pennsylvania.

At an Oct. 19 rally, Musk declared that voters who disclosed their personal information and signed a pledge to support the Constitution would be entered into a random drawing for a $1 million prize.

The suit alleges that America PAC and Musk are deceiving Philadelphia citizens, as well as those in the Commonwealth and other swing states, by offering them $1 million in exchange for their personal information and political pledge.

"The suit declares that the lottery is unlawful and indisputable."

Under Pennsylvania law, all lotteries in that state must be regulated by the state, as stated by the suit.

The lawsuit alleges that Musk's lottery violates Pennsylvania consumer protection law by using deceptive, vague or misleading statements that create confusion or misunderstanding.

On Monday, Krasner stated that the Philadelphia District Attorney is responsible for safeguarding the public from public disturbances and unethical business practices, including illegal lotteries.

Krasner stated that the DA is responsible for safeguarding the public from any attempts to undermine the sanctity of elections.

This year, the North Carolina Attorney General's office and the Michigan Secretary of State's office briefly investigated America PAC following CNBC's revelation that it had been collecting personal contact information of swing-state voters under the guise of helping them register to vote.

The PAC informed state officials that it would rectify several dead-end links on its website in response to inquiries.

Additional reporting by CNBC's Kevin Breuninger

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