Peter learns that Alycia is dead. Amanda punches him for setting up Bobby, but later forgives him. Kimberly resurfaces and agrees to serve as Peter's alibi. However, she has turned into Betsy again. She injects Peter with a paralyzing drug and has him committed to a mental hospital that she is temporarily running. Alison stops Jake from killing Richard. Jane tries to file rape charges, but learns that she has no case. Jake and Alison are stunned when Jane says that she is continuing her partnership with Richard. Jane is actually planning revenge, and begins hanging around the shooting range. Billy asks Jake to help him win back Alison. Matt is accidentally injected with tainted blood during a struggle with a street kid at the hospital.

Michael and Amanda hit the road in search of Peter and Kimberly. Peter befriends a nurse, but she turns against him when he uses her as part of a plot to escape. As Michael and Amanda try to infilitrate the mental hospital, ""Betsy"" prepares to give Peter a lobotomy. Matt develops spinal meningitis as the result of his accident with the street kid (who has died of the disease). Jo is angry when Dominick behaves insensitively toward Matt. Michael blurts out that Sydney was responsible for Jane's stroke. Jane blackmails Sydney into participating in her plot to murder Richard. Jane considers a new business proposition when a salesgirl named Samantha Reilly tells her that the store where she works is for sale. Billy and Alison have a disastrous date. Alison is furious to learn that Jake had aided Billy's pursuit of her.

Peter is saved from the lobotomy when Michael and Amanda break into the hospital, but ""Betsy"" captures them and locks them in the boiler room. Nurse Benson realizes that Kimberly is crazy, and tries to release the trio. ""Betsy"" stops them from escaping, but Michael is able to talk Kimberly back to reality. An orderly suspects that Michael has brainwashed Kimberly, and tries to attack him. Kimberly rescues Michael, but falls off a twenty-foot platform in the scuffle. Syd tries to dissuade Jane from continuing her murder plot. Jane offers Samantha a job and apartment in exchange for information on other offers on the store. Jane embezzles money from Richard to buy the space. Matt begins to recover from his illness. Jo is stunned when Dominick proposes. Jake tries to push Alison away when she expresses a romantic interest in him.

Peter is arrested for Bobby's murder. His alibi, Kimberly, drifts into a coma. Amanda marries Peter in a jailhouse ceremony so that she won't have to testify against him. A detective reveals to Amanda that Peter is lying about his identity. Dominick prepares to leave for a yearlong relief mission in Bosnia. He asks Jo to come with him, but she is torn. Matt struggles to catch up with his studies after he is released from the hospital. A classmate gives him amphetamines to help him stay awake, and he becomes addicted. Jake pushes Alison to give Billy another chance. She sleeps with Jake, while Billy is left alone in the rooftop restaurant he had rented for their date. Jane attempts to shoot Richard in his garage, but Syd has removed the bullets. Richard tries to rape Jane, but Sydney conks him in the head with a shovel. After discovering that Richard does not have a pulse, the sisters drive off and bury the body along a hill. As they drive away, Richard's hand shoots up from the dirt.