UPDATE – According to TMZ

The man who claims he had a sexual relationship with Kevin Clash — the voice of Elmo — is RECANTING his story … claiming he WAS an adult during their relationship after all.

The accuser’s lawyer just released a statement saying, “[The accuser] wants it to be known that his sexual relationship with Mr. Clash was an adult consensual relationship. [The accuser] will have no further comment.”

It’s unclear why the accuser suddenly changed his story … but sources close to the situation tell TMZ … the accuser’s attorney had been meeting with Clash’s attorney as recent as an hour ago, discussing a financial settlement and 6-figures were on the table.

One of the world’s most famous puppets, just became an American nightmare. Sesame Street’s ‘Elmo,’ whose voice is Kevin Clash, has been tainted due to the fact that the man behind the Elmo voice for the past 28 years has been accused of engaging in a sexual relationship with an underage teenager.

According to TMZ:

Sesame Workshop lawyers recently met with a 23-year-old man who claims he and Clash began a sexual relationship 7 years ago … when he was 16 and Clash was 45.

“In June of this year, Sesame Workshop received a communication from a young man who alleged that he had a relationship with Kevin Clash beginning when he was 16-years-old. This was a personal relationship, unrelated to the workplace. We took the allegation very seriously and took immediate action.”

Kevin still insists that he is innocent of any wrong-doing, but for Elmo lovers everywhere, the damage has already been done.