Two young, overprivileged business school grads are holding raves at a Santa Monica warehouse where underage kids have access to drugs and alcohol. Firm in his belief that these kids are the product of irresponsible parents, Palermo questions his own parenting skills when he finds out his daughter JESSIE attends the raves with her best friend. Meanwhile, Victor gets in trouble trying to protect Jessie from getting found out; Chris is slipped a ""roofie"" by a rave organizer; and T.C.'s declared too ""uncool"" to work undercover.

While Russ, Bobby, Monica and Jamie are out tracking pot growers in the Santa Monica mountains, Chris Kelly returns to visit a wounded T.C. Callaway, who's fighting addiction to pain pills, as well as kidnap victim Cory McNamara.All hell breaks loose when Chris finds out T.C. slept with her best friend, Cory, and that Cory doesn't know if her pregnancy is the result of Will Blake or T.C. Callaway. The season-ending cliffhanger occurs when Cory opens the blood test results to find out which one is the father.