Los Angeles, California CNN -- The sudden end to a legal battle between dethroned Miss California USA Carrie Prejean and pageant officials was prompted by the revelation of a "sex tape," according to a source familiar with the lawsuits' settlement. Prejean was fired in June after lingerie-modeling photos of her emerged that pageant officials said were a breach of her contract. Prejean sued the pageant in August, arguing her firing was religious discrimination because of her opposition to same-sex marriage. A settlement of both lawsuits was signed in New York Tuesday, but no details were made public. Lawyers and parties for each side were bound by a confidentiality pledge, according to the source. The veil of secrecy was partially lifted Wednesday after celebrity gossip Web site TMZ reported the deal was sealed after pageant lawyers presented an "extremely graphic" home video involving Prejean.
Carrie Prejean 's sex tape cost her more than a million bucks during her settlement discussions with Miss California USA , but we've learned Vivid Entertainment is officially stepping up with an offer to line her pockets with even more money. Hirsch is asking to acquire the rights to distribute "erotic footage that Carrie Prejean, former Miss California, produced for her boyfriend following their four 4 day rendezvous in February In the letter, Hirsch tries tempting Carrie with this: "We would like to present Carrie with several options where she could certainly earn millions of dollars. TMZ spoke with attorney Limandri last night, and it looks like Carrie's not biting. Carrie claims she was underage when the videos were shot, but her ex-boyfriend to whom she sent the videos begs to differ.
There's something about Carrie Prejean that makes us suspicious. Much as her book-flap copy might like to believe, our eyebrows are not cocked because of the former pageant queen's beliefs. Look, Sarah Palin 's an acquired taste, too, but we're not driven to concoct wild theories about why she's doing Oprah next week. In that case, we'd only be suspicious if Palin didn't do Oprah.
There was no one else with me. Prejean admitted to making the video of herself and sending it to her boyfriend when she was 17 years old. The tape surfaced during a negotiating session with the Miss California pageant officials over a lawsuit Prejean filed against the organization for stripping her of her crown earlier this year. I was a teenager.