Carrie Prejean’s Sex Tape likely triggerred her to drop her lawsuit against the people behind the Miss California Pageant. Prejean had demanded a million dollar settlement until the lawyer for the Pageant showed Carrie an XXX home video of her engaged in racy sexual act. Now both sides have decided to drop their lawsuits.

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more photos of Carrie and her replacement Tami Farrell (the one in black) after the jump…

A little background story to refresh your memory: Prejean’s answer to Perez Hilton’s question of same-sex marriage during the 2009 Miss USA pageant caused national media attention. She was eventually dethroned by Miss California USA Pageant for alleged breach of contract.

The fallen beauty queen Prejean sued the Pageant and its co-directors Lewis and Shannon Moakler for religious discrimination, infliction of emotional distress, public disclosure of private facts, libel and slander. The Pageant fired back and sued Carrie for $5,200 given for her breast-augmentation surgery. The pageant group is part of the Miss Universe Organization mostly owned by Donald Trump.

Back in early May, we did tell you so that Carrie Prejean had a sex tape  through our friend The Dirty.com.

As reports by TMZ via Pop Eater:

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,

Prejean, 22, was crowned Miss California USA 2009 before being dethroned.  She believes her same-sex statements cost her the title. Her book ‘Still Standing: The Untold Story of My Fight Against Gossip, Hate, and Political Attacks’ is scheduled to be released on Monday.

All the media hype is perfect for her new book release, isn’t it?

photos: Pacific Coast News; Fame

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