In a release first obtained by FOXNews.com, K2 Productions, the independent producers of the Miss California USA pageant, under license from Miss Universe, cited continued breach of contract issues as the reason for Prejean's firing.

"This was a decision based solely on contract violations," Keith Lewis, executive director of K2 Productions, said in the release. "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 has no desire to fulfill her obligations under our contract and work together.”

Prejean came under fire for her answer to a question about gay marriage two months ago in the Trump-owned Miss USA pageant, in which she was the runner-up. After the pageant, Prejean was continuously attacked as she defended her belief that gays and lesbians should not be given the right to marry in California. She became embroiled in more controversy when racy pictures of her were published that some construed as violations of her Miss California contract.