Earlier this week, after the beauty queen and the pageant dropped their lawsuits against each other and agreed to settle their differences, Prejean demanded more than a million dollars during settlement negotiations. She sued the organization in August for libel, slander and religious discrimination, accusing pageant organizers of telling her to stop mentioning God even before her controversial remarks against gay marriage, or as she called it during the Miss USA pageant, sparking a firestorm of criticism, "opposite marriage."
In response, pageant officials filed a countersuit asking to be paid back the $5,200 they shelled out for her breast implants prior to the Miss USA competition.
But now the pageant isn't getting that money back and Prejean's not pocketing any of the millions she wanted.
TMZ.com reported that Wednesday, after a lawyer for the pageant presented Prejean with a racy sex tape she made, the beauty queen backed away from her demands. TMZ.com reports that all the pageant will pay is approximately $100,000 to Prejean's lawyers and publicist.
Reached by ABCNews.com, Prejean's publicist declined to comment on TMZ.com's report.
It's the latest slide in a long downward spiral Prejean's endured since the 2009 Miss USA pageant in April. In June, she was fired from her gig as Miss California USA by the master axer himself, Donald Trump, who co-owns the Miss USA organization and initially saved Prejean from losing her crown when criticism about her "opposite marriage" comment first erupted.
"This was a decision based solely on contract violations including Ms. Prejean's unwillingness to make appearances on behalf of the Miss California USA organization," executive director Keith Lewis said in a statement sent to ABCNews.com in June. "After our press conference in New York we had hoped we would be able to forge a better working relationship. However, since that time it has become abundantly clear that Carrie is unwilling to fulfill her obligations under our contract and work together."
"I told Carrie she needed to get back to work and honor her contract with the Miss California USA Organization and I gave her the opportunity to do so," Trump said in the statement. "Unfortunately it just doesn't look like it is going to happen and I offered Keith my full support in making this decision. Carrie is a beautiful young woman and I wish her well as she pursues her other interests."
Since the question-and-answer session from that pageant that thrust her into the spotlight, Prejean's story has evolved so fast that it's hard to keep track of all the details. This should help clear things up. Below, a timeline of the controversy surrounding Prejean, from the Miss USA 2009 pageant to June.
April 19: Pageant judge Perez Hilton asks Prejean, "Vermont recently became the fourth state to legalize same-sex marriage. Do you think every state should follow suit, why or why not?" Prejean replies, "I think it's great that Americans are able to choose one or the other. We live in a land where you can choose same-sex marriage or opposite marriage. And you know what? I think in my country, in my family, I think that I believe that a marriage should be between a man and a woman. No offense to anybody out there, but that's how I was raised."