Former Miss California USA Carrie Prejean has suddenly dropped her $1-million lawsuit against the Miss California USA Pageant organization after a pageant lawyer came up with a solo hardcore sex tape, which has never been released publicly, the website TMZ reported Wednesday. Prejean had claimed she was ousted for voicing her support of California's anti-gay-marriage initiative during the televised beauty contest and maintained that she was being punished for voicing her religious beliefs. The pageant had countersued, demanding, among other things, that Prejean repay the $5,200 it spent for her breast implants. TMZ said that it had seen the video in question months ago "but decided not to post it because it was so racy." It said that "it took about 15 seconds for Carrie to jettison her demand and essentially walk away with nothing" after she was confronted with the tape, TMZ reported. CNN Wednesday night cited a source with knowledge of the settlement talks as saying that TMZ's details were accurate. Both sides signed a confidentiality agreement.