Tulisa Contostavlos settled her sex tape case against ex-boyfriend Justin Edwards last week

The X Factor bosses have dismissed one of their employees because he's being sued by Tulisa Contostavlos over her leaked sex tape.

The N-Dubz singer, 24, claims Chris Herbert, 41 - who was hired in a consultancy role - had hoped to make £4 million with alleged accomplices by selling the clip of her giving ex-boyfriend Justin Edwards oral sex online.

'As a result of us becoming aware of the ongoing legal dispute between Tulisa and Mr Herbert, we have decided it is in everyone's interest for him to not be involved in the forthcoming series,' says an X Factor spokesman.

Chris used to manage rapper Justin, who admitted his involvement in releasing the video last week at London's High Court.

Tulisa's lawyer Jonathan Coad claims Chris 'played a pivotal role in commercial exploitation of the film' and acted as a middle man.

He'll face paying thousands of pounds if he loses the case.

Chris declined to comment to Now Online.

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Anna Duff