Carrie Prejean lawsuit may have settled due to sex tape

Former Miss California, Carrie Prejean, has settled her lawsuit with the beauty pageant.

According to TMZ the settlement occurred because one of the lawyers for the pageant showed Prejean a sex tape that TMZ claims to have obtained “months ago but decided not to post … because it was so racy.”

The pageant will pay the former beauty queen's legal bill in exchange for her dropping the suit.

A video that is too racy for TMZ will be difficult to keep under wraps.