(CNN) Michael Cohen's shell company, Essential Consultants, filed a status report Friday evening agreeing to tear up the original 2016 agreement with adult film star Stormy Daniels, in which Cohen arranged to pay her $130,000 to stay silent about her alleged affair with President Donald Trump.

This so-called "hush agreement" has been at the root of some of Cohen's legal troubles and scrutinized in the criminal investigation that ultimately led to his plea last month. Cohen was Trump's personal lawyer for years. Trump has denied having an affair with Daniels.

"Today, Essential Consultants LLC and Michael Cohen have effectively put an end to the lawsuits filed against them by Stephanie Clifford aka Stormy Daniels," said Brent Blakely, Cohen's lawyer. "The rescission of the Confidential Settlement Agreement will result in Ms. Clifford returning to Essential Consultants the $130,000 she received in consideration, as required by California law."

As a part of the status report, Essential Consultants -- the shell company Cohen set up to make the payment to Daniels -- requested that she pay back the $130,000 she received.

Part of the thinking, according to a source familiar, is that Cohen no longer benefits from Daniels remaining silent -- and that she has already spoken out as much as she possibly can about her alleged affair. Daniels has discussed her alleged affair with Trump in the media, including an interview on CBS' "60 Minutes" in the spring where she described her version of events.

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