HOLLYWOOD, Calif. — Carrie Prejean and Miss California USA Pageant officials dropped their dueling lawsuits against each other Tuesday, a move that was reportedly triggered by a sex tape featuring the controversial beauty queen.

According to TMZ.com, Prejean was demanding more than a million dollars during her settlement negotiations until an attorney for the Pageant whipped out the steamy video. The celebrity gossip site says it obtained the sex tape months ago and can attest for its racy nature.

Prejean, who was stripped of her crown in June, had accused the organization of religious discrimination and emotional distress after she gave a pageant answer opposing gay marriage.

"I think in my country, in my family, I think that I believe that a marriage should be between a man and a woman," she said during the Miss USA competition in April.

Last month, the Pageant countersued Prejean, accusing her of breaking her Miss USA contract, lying about semi-nude photos and failing to repay the $5,200 she borrowed for a breast augmentation surgery.