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TMZ is reporting that Carrie Prejean, the Miss USA contestant who sparked a media firestorm with her comments about gay marriage during the pageant, is dropping a lawsuit against the pageant officials due to a recently surfaced sex tape featuring her as the star.
In June, the pageant took away her Miss California crown, saying she had failed to appear at more than 30 events she was supposed to attend.
Prejean responded with a lawsuit against Miss California USA organizers, claiming religious discrimination on the part of the pageant.
Not long after, the Miss California producers fired back with a suit of their own, claiming she failed to repay them for a loan covering her breast-implant surgery.
But the dueling suits were quietly settled on Wednesday. TMZ, which says it obtained the video in question months ago, reported that the settlement was the result of how a lawyer from the pageant discovered the video, and showed it to Prejean.
In the suit, she sought millions, but the settlement pays only roughly $100,000 for her attorney bills.
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