Bobby is arrested for assaulting Peter, but Sydney later convinces Amanda to have the charges dropped. Peter makes a deal with Billy's client so that he can pay off Alycia and escape her influence. Alycia takes over Bobby's company. ""Betsy"" throws the couch off the deck and sets it on fire, and later tries to maim Michael. Jake is furious to learn that Jane sabotaged Richard's show. He gets drunk during a fashion convention and sleeps with a stranger. The woman is later hired as Jane's new assistant. Alan outs himself to a tabloid because he can no longer live a lie. Matt is hesitant to take him back.

Billy uses underhanded means to steal the keynote speech at an ad convention away from Alison. He makes an emotional speech about lying, and reveals that he has sold his soul to become a star in the industry. After Billy is a hit at the convention, Amanda sleeps with him. Alison quits her job and learns that Amanda is using Billy to help her career. Kimberly develops another personality, a cool biker chick named Rita. She refuses Peter's medical advice. Sydney blackmails Alycia into rehiring Bobby, but he instead seeks honest work as a mechanic. Sydney offers to let the homeless Bobby stay at her apartment. Claire has been hired by Richard to break up Jake and Jane. She tells Jane that she is having an affair with Jake. Jane fires Claire and breaks up with Jake. Jake rejects a reconciliation attempt by Jo and crawls back to Jane.