Carrie Prejean sex tape ends lawsuit?

A sex tape featuring former Miss California Carrie Prejean has reportedly closed her lawsuit with pageant promoters.

The 22-year-old lost her title in June for failing to meet her contractually obligated appearances, amid allegations that racy photos were leaked onto the internet, due to controversial comments she made about gay marriage.

She later took legal action against pageant organisers Keith Lewis, Shanna Moakler and K2 Productions. They recently countersued her for $5,200 (£3,177) over funds she received to have breast implants.

It is understood that a previously discovered sex tape was used as leverage in the pageant's counterclaim. Both parties declared a settlement had been reached on Tuesday, E! reports.

Event spokesperson Roger Neal declined to comment on the video's part in the agreement, adding: "The lawsuits have been dropped, we wish Carrie the best, and Carrie wishes us the best."

The tape had been offered to various websites for $10,000 (£6,032) and was deemed to be "very graphic".