OK! magazine pulled out of a $1.7 million deal with Larry Birkhead, the father of Anna Nicole Smith’s baby daughter, Dannielynn, after discovering potential proof Birkhead "tricked us all" when he won the paternity lawsuit following Smith’s death in February.

The magazine was supposed to publish exclusive pictures from Dannielynn’s first birthday bash due in several weeks, but has canceled accusing Birkhead of striking some backroom deal with Smith’s former lawyer, Howard K Stern, his supposed long-standing rival.

The magazine's publicist said "OK! Magazine has uncovered explosive allegations regarding Larry Birkhead, Howard K. Stern and baby Danielynn, prompting the magazine to cancel our exclusive coverage of Danielynn's first birthday party."

"The newly obtained allegations are detailed, shocking and potentially incriminating. It makes it impossible for OK!, in good conscience, to promote this family's highly questionable relationship in our pages."

"It breaks my heart that OK! has to pull out of a shoot that would have chronicled the next great chapter of Dannielynn's life," editor in chief Sarah Ivens said in a statement Thursday.

"But first and foremost, we care dearly about the well-being of the young one, and my moral obligation lies with her. So, it's unfortunate, but at the moment, my biggest fear is that Larry and Howard may have tricked us all," she added.

Other details were not detailed, however, the magazine promised to state its case in the upcoming issue of OK!.

As there’s always a second side of the story, Birkhead claims the magazine retreat its offer after Us Weekly put Dannielynn on its cover while OK! wanted to be exclusive. Birkhead claimed an OK! reporter threatened him with a nasty report on him if he dealt with a competing publication, TMZ.com reported.

"I was just threatened via email by (the reporter) that OK! would do a negative story on me if I did any stories with any other mags. Ridiculous!!! I am not sure what planet she's on but I am not going to be threatened. She blew it!" Birkhead wrote in an email to the magazine.