Kevin Clash, the voice of Sesame Street’s Elmo, agreed to pay his accuser $125,000, under one condition – that Sheldon Stephens retract the allegation that he was underage.
Originally, Stephens alleged he was only 16 when Clash began a sexual affair with him. Clash has acknowledged an affair, but insists it started when Stephens — now 23 — was an adult.
Multiple sources tell TMZ … hours before Stephens recanted his underage sex allegation, a settlement was struck between the two parties.  Under the terms of the settlement, Clash agreed to pay Stephens $125k.  But the settlement then provides the following:
“Stephens agrees that immediately upon execution of this Agreement, his counsel, Andreozzi & Associates, P.C., shall release the [following] statement … ‘He [Stephens] wants it to be known that his sexual relationship with Mr. Clash was an adult consensual relationship.'”