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 Reports claim that the X-factor's star was devastated over the news.

According to the Daily Star, Katie was told of the story by X Factor staff. A source said: "She was taken into a private room by a couple of female staff who told her the whole story.

"It came like a bolt from the blue for her - she had no idea that her gran was involved in anything like this."

They added: "After a few tears, Katie calmed down a bit but did say, 'I cannot believe this. When is all this going to stop? It's just one thing after another.'"

Depite being in the bottom two 4 times, Katie gained enough votes this week to secure her place in next week's show.

source: entertainmentwise