K2 Productions is suing Prejean for, among other things, the cost of a $5,200 loan they gave her for breast surgery to help her "be more competitive" at the April 2009 Miss USA Pageant. Prejean went on to lose the pageant after responding to a judge's question about same-sex marriage by saying the she believes "marriage should be between a man and a woman" because "that's how I was raised." Prejean's strict uprbringing and conservative convictions may prevent her from accepting the gays, but they apparently didn't stop her from posing for topless photos. Those pictures appeared on the internet in May and, one month later, Prejean was stripped of the Miss California crown for unspecified contract violations. Since then, Prejean and the pageant organizers have been battling it out in court.

In August, Prejean filed a lawsuit against K2 Productions alleging that the company discriminated against her because of her religious beliefs. Prejean's suit alleges that K2 gave her "instructions not to reference God in her Miss USA applications," which seems odd since her page on the official Miss California USA web site includes the bible verse "I can do all things through Christ who strengthens me." K2's countersuit, which was filed yesterday, states that, in addition to not paying for her implants, Prejean missed events, lied about the semi-nude photos, landed an unauthorized book deal, and used her title to support the National Organization for Marriage's "campaign of intolerance" against gay marriage. K2 wants Prejean to fork over the money from her boob job and the proceeds from her upcoming book.

K2 Productions can't really do anything to hurt Carrie Prejean. They may get the money, but by suing her, they're just helping her cultivate the religious martyr status that's landing her speaking gigs at right wing events and morning show appearances on Fox News.

Prejean, who made the media rounds last week floating a similar "I was set up by haters" theory, and her lawyer Charles LiMandri are launching an offensive against California pageant officials, telling E Online that Keith Lewis, the poor sap whose horrible lot in life is to be director of the California pageant organization, tried to get her to see some gross gay movie knowing full well that it would assault her delicate anti-gay sensibilities and that she'd refuse to attend.

"[Lewis] wanted her to go to the debut of a docudrama supporting same-sex marriage," the attorney claims. "The people [who] produced it were going to be there explaining their journey as gay men toward same-sex marriage. She said, 'I'm just not comfortable doing that.' I wrote back to [Lewis'] attorney saying, 'She won't do the pro-traditional marriage stuff as Miss California. But don't ask her to do the pro-same-sex marriage stuff either.'"

Prejean's lawyer also claims that Lewis tried to trick her into posing for Playboy, knowing full well that his client's high moral fiber would never allow her to do such a thing like taking off her clothes in front of a camera.

"She had just gotten a request to do a Playboy shoot with partial nudity-this was several days after [Donald] Trump reinstates her," LiMandri says. "[Lewis] knew she wouldn't do that stuff, and he was trying to set her up, saying, 'You can pick your photographer. You can pick the photos.' And then he'd be able to fire her for sure."

So yeah, Carrie's the victim of ill-timed wind gusts and some sort of vast left-wing conspiracy. So now she'll "write" a book about it all and pose for Playboy and in two years she'll be a co-host on Fox & Friends, which is right where she belongs.

Carrie Prejean's Lawyer: She Was Set Up [E Online]

Technically, TMZ is reporting, that she was let go for "breach of contract." Prejean was originally granted amnesty by The Donald, after gay rights activists got up in arms about her hateful rhetoric and—oops!—some nude photos turned up. But now the axe really has fallen, because Carrie California just got too wrapped in fame—becoming a vocal anti-homo advocate and even guest-hosting on the execrable Fox & Friends. All of these after-beauty-school activities were supposed to have been cleared by the pageant, but what are rules, really?

So, she's losing her title not because she's an ignorant bigot, but because she didn't read the fine print. Doesn't much matter anyway, as another beauty queen from the Golden State, Miss Malibu Tami Farrell, had already assumed most of the day-to-day pageant duties when the whole nude/gay/Perez scandal broke out.

It'll be pretty hard to blame the wind for this whole mess, Carr.

After his typical crazypants bragging about the astounding relevance of his various pursuits (Miss America is finished!) the Miss USA head honcho declared clemency for the crusader for Opposite Marriage, saying that she made a brave statement, the same one the president made, and that really people wouldn't have cared "if her beauty wasn't so great." She's pretty, guys. So she's totes cool to wish all the gay people were dead.

"Onto the pictures," he said, referring to the steamy photos of the child of God bearing her breasts in sexy poses. He said they were carefully reviewed—and, coming from him, I'm sure they were—and, you know what, it's the 21st century. If the pageant wants to stay relevant, they gotta move with the times, man. And the times say: let's look at some jugs. Hey Don, have you seen the new ones??

Bells rang in public squares all across New York and doves filled the air, only dropping their poop on Chelsea and Hell's Kitchen, Murray Hill completely unscathed. A noble victory for Miss Carrie California, our most brave and straight-talkingest champion of Free Speech.

Even though she is quitting, Harder insisted she didn't do anything wrong and plans to give birth in August. "This isn't another scandal," Harder told the Philadelphia Daily News. "This is a baby. This is a life."

Oh, Baby! Miss NJ Bows Out [NYDN]

Earlier: Why Did They Take Away Our Miss USA?

· While idling in your car for what seemed like days in a futile attempt to escape from The Grove's parking structure, you've often suspected you were actually trapped in a multi-tiered, Alighierian Inferno. Losanjealous offers photographic proof of your fear.
· "Dick in a Box": the t-shirt is now available on the internets. A quibble: Where's the bow and gift wrapping? It almost looks like you're being directed to put your junk in that birdhouse.
You know who really hates Frosty the Fucking Snowman? This guy.
Cityrag directs you to the 50 Greatest Cartoons of All Time.
· The Miss Nevada USA pics, uncensored—except for the Splash News watermark all over them. [Very NSFW]
· The ThighMaster presents The Girls Of The Wonder Years.

• Miss Nevada USA Fired for Racy Photos [AP]
• Naughty Miss Nevada Stripped of Her Title [TMZ.com]

Anderson Cooper: A 360 View of Rosie and Trump [B&C]

[UPDATE: Drunken make-out photos have been removed by request of the owner. But you know where to find them by now.]

• Miss USA rocked by sexy new scandal [Canada.com]

· We tried and we tried (we swear!), but in the end, we just couldn't make ourselves give a shit about the Miss USA situation. Even a little. We will, however, run this large picture of the semidisgraced Tara Conner getting theatrically weepy at press conference announcing The Donald has temporarily exiled her to rehab until she learns to party in a manner more becoming a Trump-owned pageant winner.
TMZ EXCLUSIVE 'AMERICAN IDOL' SHOCKER! Prospective Contestants To Be Brought To Hollywood, Made To Sing Songs By Established Musical Acts!
15 grams of coke? Tawny Kitaen really didn't fuck around with her drug abuse.
Year-End ListMania! 10 TV Shows That Failed! 10 Celebrity Videos That Went Viral!
x17 Online has some striking before and after pics of Paris Hilton running the alcohol/chemical-abuse gauntlet at Teddy's. Couldn't she pull herself together a little bit for the cabbie?

[Photo: Getty Images]

• Aleksey Vayner now inspiring the youth of our country. [IvyGate]
  
• Merry Christmas, VNU employees! You're out of a job. [AdAge]
  
• The federal lawsuit against Perez Hilton may set some sort of Fair Use precedent. [LAT]
  
• Soon-to-be-dethroned Miss USA Tara Conner might have a thing for Miss Teen USA. [TMZ]