Ray J's Ex Drops Sex-Tape Lawsuit

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HOLLYWOOD - R&B star Ray J's ex-girlfriend Kim Kardashian has settled her legal dispute with Vivid Entertainment over the release of her sex tape with the singer.

Vivid Entertainment, which paid $1 million to an unidentified source for the video, will hand over nearly $5 million to Kardashian and stop distributing the tape by the end of next month.

Kardashian filed a lawsuit against Vivid Entertainment in February, claiming the firm's intention to distribute the video violated her "right to privacy."

Vivid Entertainment's co-chairman tells Web site TMZ.com, "We are pleased that Kim has dropped her legal action against us. We met with her several times and finally reached a financial arrangement that we both feel is fair."

Ray J is now reportedly dating Whitney Houston.

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