Teri threatens to expose Michael's actions to Kimberly unless he lets Peter take the fall for sleeping with Brandi. Amanda apologizes for doubting Peter. He refuses to meet Teri's settlement demands. Kimberly begs Peter for help with her illness. Before he can treat her, he is arrested for statutory rape. Amanda learns that Michael was the one who slept with Brandi. Kimberly argues with ""Betsy,"" who conks Michael on the head with a hammer. Matt asks one of his medical school professors, pediatrician Dr. Dominick O'Malley, to look at Tyler. He finds no evidence of abuse. Laurie tells Jo to mind her own business. Billy's string of success with ad campaigns comes to an end. He decides that he must put his obsession with Brooke behind him and move on. Richard rapes Jane during a business trip to New York. She pushes Jake away and doesn't tell anyone what has happened. Sydney inadvertently becomes a porno producer when she invests money with an old acquaintance of Bobby's.

Amanda persuades Teri to drop the charges against Peter by making Brandi the spokesperson for a cosmetics company. ""Betsy"" throws a knife at Michael after he reveals that he slept with Brandi. When he returns, Kimberly begs him to stay away for his own good. She turns to Peter for help, but vanishes before he can aid her. Bobby's friend Jimmy tells Sydney that Alycia and Peter conspired to take Bobby down. Syd shares this news with Bobby, who sets up a confrontation with Alycia. When he tries to attack her, she knocks him out a high-rise building to his death. As Peter is about to be questioned about Bobby's death, Alycia calls from her car and confesses. She agrees to turn herself in, but loses control of the car while picking up her phone, and has a head-on collision with a semi. Dominick gets Matt to set him up on a date with Jo. She convinces him to see Tyler again, and Laurie reveals that the boy was abused by her ex-boyfriend. Jane tells Jake about the rape in the hopes that he w

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.