Which explains why the tape's re-emergence this week reportedly took Prejean by surprise.
Just as we were preparing for a long, bitter court fight, there was a joint announcement out of the blue on Tuesday announcing a settlement.
The following day, TMZ reported that the sex tape was the pageant's trump card, and Prejean wound up with no money in the settlement (though the pageant was said to have paid $100,000 in fees to her lawyers and publicist).
Citing the settlement's confidentiality agreement, pageant spokesman Roger Neal declined to comment on whether officials used the sex-tape as leverage, except to say "the lawsuits have been dropped, we wish Carrie the best, and Carrie wishes us the best."Prejean's attorney, Charles Li Mandri, echoed those sentiments."Since it was a confidential settlement, he will not be able to discuss it," his assistant said.
While Li Mandri would not comment on the tape—or whether Prejean would sue to block its release—he did tell Radar Online that if the Miss Cali camp did use the sex tape to procure a settlement, he was ready to nullify the deal."In my 26 years of practice I have never dealt with a situation," the legal eagle said.
"It seems as if someone has acted in an unethical and unlawful manner by even raising this issue.
We are weighing our options and if this is a breach of contract we are considering suing for punitive damages."Note to Team Prejean: just don't punish us by releasing the tape.
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Now a Radar investigation has uncovered that there are SEVEN more "biggest mistakes" of her life all of them solo performances, just like the one sex tape that the religious beauty queen has admitted to.
beauty queen Carrie Prejean and the Miss USA pageant have dropped counterclaims stemming from her controversial same-sex marriage statements made earlier this year that may have been motivated by a sex tape, writes TMZ.