SAN DIEGO -- A threat to leak a sex tape prompted former Miss California Carrie Prejean to end her dispute with Miss California USA pageant officials, according to TMZ.com.

In August, the San Diego native sued the pageant for more than $1 million and accused them of libel, slander and religious discrimination.

In response, pageant officials filed a lawsuit against Prejean asking to be reimbursed $5,000 for her breast implants.

TMZ said the tape they obtained showed Prejean performing a solo sex act.

Pageant attorneys showed Prejean the tape earlier this week, and she agreed to walk away from the lawsuit, according to TMZ.

TMZ said pageant officials dropped their lawsuit once Prejean backed down.

On Friday, Prejean's attorney, Chuck LiMandri, issued the following statement:

"In my 26 years of practice, I have never dealt with a situation quite like this. We came to a confidential agreement and yet within hours, rumors about what happened in the mediation were flying around the Web and being accepted by news organizations as absolute fact. Carrie and I plan to continue to honor our confidentiality agreement with the other parties. But I can tell you this; many of the rumors circulating are inaccurate and misleading."