Carrie Prejean, the dethroned Miss California 2009 who stirred up controversy by expressing her views against gay marriage, has dropped her lawsuit against the Miss California contest because of an “extremely graphic” sex tape, says a report at the celebrity gossip site TMZ.

“Carrie Prejean demanded more than a million dollars during her settlement negotiations with Miss California USA Pageant officials — that is, until the lawyer for the Pageant showed Carrie an XXX home video of her handiwork,” the Web site reported.

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The Web site reports that it obtained a copy of the sex video “months ago but decided not to post it because it was so racy.” While TMZ would not state what was depicted on the tape, it hinted at the content by saying that “Carrie has a promising solo career.”

Prejean won the 2009 Miss California title earlier this year, but stirred controversy over her answer during the pageant to a question about gay marriage.

“You know what, in my country, in my family, I think I believe that marriage should be between a man and a woman, no offense to anybody out there. But that’s how I was raised and I believe that it should be between a man and a woman,” Prejean said, causing a stir of complaints from progressives and rights activists.

Prejean raised more eyebrows this spring when TMZ released topless photos of the pageant winner. The pageant stripped her of her title in June, officially because she had failed to appear at scheduled functions. Prejean then sued the pageant on grounds of religious discrimination and slander.

This video is from TMZ.com, broadcast Nov. 4, 2009.

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