Socialite Kim Kardashian will be paid an almost $5 million settlement from Vivid Entertainment after contesting the company’s right to release the sex tape that she made with ex BF Ray J.

Vivid has agreed to cease distribution of the video by the end of May (but a Vivid source claims the settlement payment is “closer to $3 million” and that “no decision has been made as to whether or not distribution will stop”).

“Kim is relieved that she can now move on from this embarrassing chapter in her life,” says a friend.

Steven Hirsch, co-chairman of Vivid Entertainment, released a statement saying, “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.”

Hirsch continued, “We’ve always known we had the legal right to distribute this video which became an instant best-seller and we’ve always [wanted] to work something out with Kim so she could share in the profits.”