Carrie Prejean's Sex Tape May Have Led to Settlement

Filed under: Awards, TV News, Celebrity Scandal

Fallen beauty queen Carrie Prejean and the Miss USA pageant have dropped counterclaims stemming from her controversial same-sex marriage statements made earlier this year that may have been motivated by a sex tape, writes TMZ.

Prejean allegedly dropped her demand for a million dollar settlement after a lawyer representing the Miss California Pageant showed a video of her engaged in racy sexual acts.
"Carrie Prejean, [pageant director] Keith Lewis, and K2 Productions [the independent pageant producers] have dropped their claim against each other and wish each other the best in their future endeavors," reported the official statement. Sources have revealed that the pageant will pay Prejean approximately $100,000 for lawyer and publicist fees although she will earn nothing personally, says TMZ.

Prejean's answer regarding same-sex marriage during the 2009 Miss USA pageant caused national media attention. She was eventually dethroned by Miss California USA for alleged breach of contract.

Prejean sued the pageant and co-directors Lewis and Shannon Moakler for religious discrimination, infliction of emotional distress, public disclosure of private facts, libel and slander. She was countersued by the group for $5,200 given for breast-augmentation surgery. The group is part of the Miss Universe Organization largely owned by real estate mogul Donald Trump.

"We are moving forward from the past and looking towards the crowning of two winners and the new look of the upcoming Miss California USA pageant, telecast live on Nov. 22," added Lewis, executive director of the pageant.

Prejean, 22, became Miss California USA 2009 before placing first runner up in the Miss USA 2009 pageant. She believes her same-sex statements cost her the crown. Her book 'Still Standing: The Untold Story of My Fight Against Gossip, Hate, and Political Attacks' is expected to be released on Monday.