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 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.

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