K2 Productions, producer of the Miss California pageant, has filed suit against Carrie Prejean for failure to repay $5200 that they loaned her for breast augmentation. This is a countersuit in response to a previous filing by Prejean which claimed that the company violated her privacy by confirming to reporters that her breasts are fake. K2's lawyers state that Prejean revealed the truth herself, though not literally, when she walked the stage for the Miss USA pageant in a bikini.
Of course, the controversy all started when Prejean declared her opposition to gay marriage during the 2008 Miss USA pageant. She was stripped of her title as Miss California. She alleges that her beliefs are the reason her title was removed, while pageant producers state that she failed to live up to her contractual obligations.
K2 states that Prejean entered into a verbal agreement to accept a loan for breast augmentation. The suit goes on to request that they receive any profits from Prejean's book that's due out next month, which they say is a violation of her contract.