Kyle flies into a drug-induced rage and burns down his and Amanda's dream house. He tells Amanda that he is sterile and disappears. Ryan finds him drinking at the basketball courts and brings him home. Kyle injures himself while Amanda is out, and Peter recommends that he check into a rehab center. Amanda fires Rikki G and the band, prompting a furious Eve to quit. Rikki G tries to rape Amanda, but Peter comes to the rescue. Audrey's sexual harassment allegations are part of a scam engineered by Michael. She is to recant her story in exchange for a share of his winnings in a countersuit against the hospital. Audrey refuses to follow through until Michael agrees to a sexual relationship. She secretly videotapes their encounters. Lexi pursues Jane and Ryan to a Mexican resort, where they are trying to land an account. Jane sprains her ankle and returns home to reunite with the ""innocent"" Michael. Lexi impulsively kisses Ryan, but apologizes for acting rashly.

Eve is jealous of the amount of time Peter is spending with Amanda. She skips a meeting with her parole officer, and is arrested for performing at an illegal after-hours club. Ryan catches Peter and Amanda in an embrace, and learns of their supposed hotel rendezvous from Lexi. Amanda tells Peter that she is pregnant. Eve overhears this, and races to the rehab clinic to tell Kyle. Kyle breaks out of rehab and goes ballistic, destroying everything in sight and trying to kill Peter. When Amanda tries to stop him, he accidentally throws her through a second-story window. Michael receives a two-million-dollar settlement from the hospital. He insults Audrey on television, so she decides to send her illicit videos to Peter. Ryan and Lexi collaborate on an ad campaign, and hold a drinking contest to determine who will use it. They end up having sex in a closet, and miss their deadline. Dr. Visconti advises Lexi to be less aggressive in her pursuit of men.