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Settlement is reached due to Carrie Prejean’s sex tape · 2009-11-06 18:58

Carrie Prejean, www.tmz.comThe infamously dethroned California pageant princess Carrie Prejean and Miss USA pageant organizer K2Productions have reached a settlement in their dueling lawsuits.

Carrie, who claimed she was stripped of her Miss California title in June due to religious discrimination, dropped her suit seconds after K2 lawyers showed her a hard-core vid in which she performed solo sex acts.

When the video started playing, Carrie’s first reaction was “that’s disgusting” ... and Carrie denied it was her.

Then, the camera angle changed … and panned up to her face. She was caught red-handed…

TMZ says that, under the terms of the settlement, Carrie will be paid . . . $0, while her lawyers and publicist will get $100,000. K2 dropped its lawsuit, which accused Carrie of failing to repay $5,200 for her breast-augmentation surgery.

Miss California USA has said it dethroned Carrie for failing to attend contractually obligated appearances and making paid appearances without the org’s approval. Carrie made headlines when she told Miss USA judge Perez Hilton she opposed gay marriage because of her deeply held convictions as a Christian, The Philadelphia Inquirer reports.

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