said during a webcast Wednesday that he obtained the Prejean video during the summer , but found it `` too racy '' to post on his site . He indicated Prejean was alone in the video . The source with knowledge of the settlement talks told CNN those details were accurate . Prejean 's lawyer , Charles LiMandri , responded with a short statement issued through an employee at his law office . `` It 's a confidential settlement , and he ca n't discuss it , '' the statement said . Several calls and e-mail to Prejean 's publicist were not returned Wednesday . Prejean 's tell-all book hits bookstores next week , and she is scheduled for media interviews to promote it . Pageant spokesman Kenn Henman said Tuesday the settlement means all lawsuit demands are dropped . The pageant had claimed that the contract she signed when she entered their competition last year gave the pageant the rights to anything she wrote . The settlement ended that claim . Pageant officials also dropped their attempt to be repaid for her breast enhancement , which was done before she represented California in the Miss USA competition , according
Los Angeles , California -LRB- CNN -RRB- -- 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 . Pageant officials countersued last month , demanding their former beauty queen repay $ 5,200 in pageant money spent for her breast implants and give them all proceeds from a book she 's written . 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 . TMZ Managing Editor Harvey Levin