Scapegoating AM for choices that were far out of her power is typical studio behaviour, which is why I don't support this narrative.
While I'm sure AM did pose an ultimatum, I think the execs wanted the Cole story-line to continue more than they wanted either AM or SD because Julian McMahon was such a fan favourite, so they kept AM. Not to mention that the show was becoming slightly raunchier and they needed her to appeal to their young budding male audience, and AM was considered the hotter sister in the public's view. Besides, if they were really scared of a law-suit, SD was always in a position to file a counter suit. Yeah, I just don't buy that AM had as much sway as they're claiming.
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