TMZ is reporting that Carrie Prejean has suddenly withdrawn her million-dollar lawsuit against Miss California USA after the pageant’s lawyers showed her a clip from her own XXX sex tape.

The video and photos depicts Prejean pleasuring herself. TMZ claims it actually saw footage from it months ago, but didn’t publish it due to the graphic nature.

According to the gossip website, once Prejean was made aware of the existance of the tape, and the possibility of it going public, she backed away from the negotiating table. Pageant officials will foot the $100,000 bill for her attorney and publicist.

“Carrie Prejean, [pageant director] Keith Lewis, and K2 Productions [the independent pageant producers] have dropped their claim against each other and wish each other the best in their future endeavors,” reported the official statement.

Prejean, 22, became Miss California USA 2009 before placing first runner up in the Miss USA 2009 pageant.

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