JR, Babe, Adam, and Krystal confronted Colby about the pregnancy test instructions. Colby claimed they were Sydney's, but Sydney came in and announced that Colby thought she was pregnant. Winifred took Sydney out of the room and everyone stared at Colby. They all asked if Colby was pregnant. Colby said she did not take the test yet, so they made her go into the bathroom and take it. Krystal made the men leave the room, so Colby could have privacy. Colby came out of the bathroom and looked at the test. She saw one line on it and assumed she was pregnant. Babe tried to console Colby, but she called Babe a hypocrite. Krystal then looked at the test and explained Colby read it wrong because two lines meant she was pregnant, not one line. Colby was ecstatic and rushed out to tell Adam. Adam was still very upset. He thought Sean was responsible and threatened to put him in jail. Colby said it was not Sean and the sex was not her fault. Colby then announced that Josh Madden was the man she had sex with. Colby explained they had sex the night after her party. Colby said she ran away and Josh found her on the streets. Colby claimed he brought her back to his place and took advantage of her vulnerability. Colby claimed he found her in the tunnels because she told him that was where she was hiding. Babe called Colby a liar because she was with Josh that night. JR stated Josh already left when he found Babe naked at ConFusion that night, so he believed Colby. Babe said Colby was trying to cover her ass, but Adam told Babe to shut up. Colby begged Adam to make Josh pay for what he did. Adam promised to take care of it and JR said Josh was a dead man. Then, Krystal, Adam and JR left the room. Babe shut the door and called Colby a lying bitch. Colby told Babe to prove it. Colby also said the only way Babe could save Josh was to admit she was with him that night and had an affair.
Josh was at ConFusion and Amanda brought him a drink. Amanda asked if Josh was out to hurt Babe. She wanted to know if he was hitting on Babe to get revenge on JR. Josh admitted he loved Babe. He said at first it was just lust, but it turned into true love. He also said he hated JR and would do anything to take Babe away from him. Amanda understood why Josh hated JR and could relate to his feelings. Meanwhile, Erin saw Aidan and Di walk into ConFusion together. Erin asked if she could speak with Aidan and Di walked away. Erin apologized for hurting Aidan and ruining their relationship. Aidan accepted the apology. Erin then approached Di and thanked her for allowing them to talk. Di went back to Aidan, but he seemed distracted. Aidan then grabbed a bar patron and busted him with the date rape drug. The cops came in soon after. Everyone thought they were there for the man with the drugs, but they were looking for Josh. When they found Josh, they put him under arrest for statutory rape. Josh was stunned!
Annie had just put Emma to sleep in the penthouse when Ryan came over. He was looking for a book he forgot. Annie offered him hot cocoa and they sat down to talk. Annie reminisced about the good times she had raising Emma. She then wondered how she would tell Emma about T. Ryan told Annie not to worry about that yet. He encouraged her to focus on the positive aspects of her life. Annie asked Ryan how he got over his terrible father. Ryan said he made a lot of mistakes, but eventually realized that DNA was not destiny. He told Annie not to worry about that because T was not Emma's biological father. Annie then explained she decided not to find Emma's biological father. Then, Emma came in because she could not sleep. So, Ryan told Emma a story to help her fall back asleep.
Dixie was about to go to bed when David came to see her. Dixie did not want to talk to him, but David would not leave. David announced that he found Kate. Dixie thought it was a trick and was annoyed. David then showed her a picture of Emma. Dixie realized he stole the picture from her. David admitted he stole it and stated he saw the girl in person. He also showed her results from a DNA test he took. Dixie demanded to know where she was. David said she would never know. Dixie was distraught and grabbed a knife. She gave it to David and asked him to kill her because this was what he really wanted. David put down the knife. David explained he cared about Dixie, but she rejected him over and over again. He called her an ungrateful tease. David wanted her to suffer like he did. Dixie apologized for the way she treated David. Dixie said if she could go back and change her behavior she would. Dixie also wished she could bring back David's baby. She begged David to tell her about Kate. Finally, David had a change of heart. David said he did not want to live with hate anymore. David showed Dixie a picture he took of Kate the week before. Dixie looked at it and smiled. David announced the little girl was in Pine Valley and he would show Dixie where she was.
At the police station, Erica and Jeff took on J.R. and Adam. Erica told J.R. that Colby was just like Liza. Colby came out and put on her act with tears and fears. Erica said that Colby needed professional help, everyone began arguing and Derek demanded quiet. Josh thanked Jeff for his support and then left. Jeff told Erica to lay off Babe or they would lose the ground they had made with Josh.
Babe told Krystal that Josh would never sell her out and tell that they were together the night Colby said she was violated. They summoned Sydney and asked her about that night, but Sydney continued to cover for Colby. Adam, J.R. and Colby came in and Babe told her to stop lying. Adam told Babe to lay off Colby but Babe again said that she was lying. Babe told J.R. that she would bet her shares of Fusion that it wasn't Josh, but Sean Montgomery. Babe kept trying to convince J.R. that Colby was lying, but J.R. said that he couldn't see any good in Josh Madden.
David told Dixie that he could take her to Kate, but Dixie told him that she was scared of disappointment. Tad came to the room and David told Dixie he wouldn't tell if Tad was part of it. Tad told Dixie that this was just one more attempt to get Dixie into bed. Dixie showed Tad the photos of Emma and said that David did a DNA test and that this little girl just may be Kate. Tad didn't buy it and said that they had to consider the source. David said he wasn't lying and Dixie said to prove it by telling them where the little girl was. David said this was supposed to be a whole new beginning for them
Ryan, Annie and Emma were having breakfast at B.J.'s and Tad and Dixie arrived. Tad holds Dixie back and they sit at another table. Dixie was convinced that Emma was Kate and again Tad stopped her from going to the little girl and Dixie continued to stare. Annie and Emma were leaving, but Dixie insisted they stay. Ryan wondered what was going on and when Annie actually tried to leave, Dixie grabbed her arm and announced that Emma was her child.
Sydney found Sean at B.J.'s and told him the whole story. Sean seemed relieved that Colby pinned the sexual assault charge on another guy. Sydney suggested it would look good if they pretended to hook up. Colby was outside of B.J.'s and as Sydney and Sean left, he ignored her.
At Fusion, the girls celebrated the return of Kendall. Simone immediately wanted to know about Zach, but Kendall asked about business. When the others began questioning her, she said she didn't want to answer any questions or talk about her relationships ever again. On the rooftop, Babe apologized to Josh and said she was going to come clean with everyone about what really happened that night. Kendall happened to be on the other side of the door and heard every word Babe said.
Sydney and Sean were hanging out by their lockers at school. Colby came by and was upset with Sean for ignoring her earlier. Sean still ignored her and walked away. Colby blamed this on Sydney. Sydney called Colby a slut for sleeping with Sean and Josh. Colby admitted she did not sleep with Josh. Sydney believed Colby should thank her for not telling Krystal and Babe the truth. Colby thought Sydney wanted her life and said she could have it because it really sucked. Sydney said she did not want Colby's life. Then, they each called each other a bitch and a whore.
Zach sat in his office and stared at the divorce papers Kendall gave him. Di came in and asked him questions about work, but he did not answer. Di was frustrated. Then, Myrtle came in. Di wished her luck with Zach and left. Zach agreed to talk with her and poured them both a drink. Zach said he told Kendall everything and she no longer wanted him. Myrtle still had faith in their relationship. She offered to speak to Kendall on Zach's behalf. Zach refused the offer because he said it was Kendall's decision now. After Myrtle left, Zach sat in the dark with his drink and continued to stare at the divorce papers.
Krystal and JR were at home together. Krystal stated that Colby's lies about Josh were her fault. She explained that Colby was jealous of the new baby and did this to get attention. JR still believed Colby and asked why Babe and Krystal were so sure Josh was innocent. Krystal said Colby lied before and was lying again. Krystal also said Josh was an easy target for Colby because JR hated him so much. JR was not convinced. Then, Krystal warned JR not to put Josh in jail because that would make Babe care about him more.
Babe and Josh were on the Fusion rooftop and Kendall was still eavesdropping. Babe told Josh she was going to tell everyone the truth about their affair, so he could use it as an alibi. Josh asked if she would tell JR the truth if he did not need an alibi. Babe said that did not matter because she had to save Josh. Josh persisted though. Babe finally admitted she would not tell JR the truth if she did not have to. Josh was upset and told Babe not to tell. Babe said she was confused because she loved both Josh and JR. Josh said he wanted Babe's marriage to be over. Then, Kendall came in and called Babe a cheating slut. Josh told Kendall to stay out of their business. Kendall asked Babe to slap her, so Babe did. Kendall stated that was her punishment for telling Babe to pick Josh. Kendall then gloated about having ammo against Babe and JR. Then, JR came in. Josh told Kendall to keep her mouth shut or lose him as a brother. So, even when JR was taunting Kendall and Josh, Kendall did not tell JR the secret. Babe then got JR off the roof. Babe was still mad that JR was persecuting Josh, regardless of his innocence. Babe told JR to leave and he did. Meanwhile, Kendall told Josh to stay away from Babe. Josh believed Kendall was a hypocrite because she married a murderer. Kendall did not want to talk about her marriage. Kendall then revealed she did not tell JR the truth because she did not want to risk losing Josh as a brother. Then, Bianca came on the roof. Bianca asked if she could join the conversation because she was their sister too.
Annie wanted to leave the café to bring Emma to the Miranda Center. Dixie did not want the little girl to go and begged Annie not to take her daughter away. Annie was shocked and horrified, but Dixie continued to call Emma her daughter. Finally, Annie left and Ryan stayed to talk to Tad and Dixie. They explained that David found DNA proof that Emma was their child. Ryan was annoyed because he assumed this was another one of David's tricks. Ryan also told Dixie that she scared the little girl. Dixie regretted her actions. She began to doubt Emma was her daughter. Dixie apologized for her behavior and left. Tad then asked for Ryan's help. Ryan did not believe Emma could be Kate because David made the discovery. Tad proceeded to show him the two pictures of Emma. Tad said Annie should not be worried if the little girl really was her child. Ryan agreed to help Tad, but he asked that Tad and Dixie stay away from Annie and Emma. Meanwhile, David found Dixie outside and convinced her that he was not lying. David told her to go with him to find the little girl. So, they both went to the Miranda Center, where Annie dropped off Emma with Krystal. Dixie saw Krystal and explained that Emma might be Tad's daughter. Krystal allowed Dixie to speak with Emma. Dixie then approached Emma and they played and talked. Dixie said she had a son and a daughter that she loved very much. Emma stated that her daddy was not her real daddy. Dixie asked how she knew this. Emma said her mother told her. Then, as Dixie asked if Emma knew what adoption meant, Annie walked in. She demanded Dixie stay away from Emma!
Incensed that Dixie dared to defy her wishes, Annie tears into the Miranda Center and manages to send her daughter outside to play before losing her cool. Annie then caustically demands explanations from both Dixie and David on why they picked her and Emma to stalk. They try to assure her that there is an explanation, but to no avail. Ryan shows up and, having overheard the verbal altercation, demands an explanation as well. Krystal feels bad that Annie is upset, but admits that she didn't think there would be a problem with Dixie talking to Emma. Ryan notes that Tad said Dixie would refrain from harassing Annie and Emma any further. As Erin enters the room, David jumps in, saying that neither Tad nor Ryan control what Dixie does. Then, Emma returns to the room and in an attempt to shield her daughter from the harsh words, Annie suggests that Erin take Emma home. When they leave, Dixie finally has a chance to get a word in edgewise, and says that she isn't insane and that she didn't pick Emma out of a crowd for no reason. Annie heatedly claims that Emma is not adopted, and that if Dixie could not get that through her head, she would make sure the police did. Calmly, Dixie asks if Annie would be willing to tell the cops how Greg Madden had been involved in their lives. Dixie reveals that Emma's picture was found in Greg's storage shed, but Annie steadfastly refuses to talk about the alleged link, saying that she is not obligated to reveal anything personal. Dixie briefly relays the story of how Greg took her daughter and gave her to a family, and how her daughter is out there in the world, unaware of how much her birth mother loves her and misses her. Annie rejects the sob story, saying that no amount of convincing would make her give up her baby. She reasserts that if Dixie comes near her or Emma again, she will have Dixie arrested. Ryan urges her to go home and promises that he will be there soon. Once she leaves, Ryan asks why Dixie went against her promise to leave them alone. Dixie insists that all she wanted to do was talk to Emma, to get a feel for whether or not David's claim could be true. David tries to support that claim, but Ryan turns to him and quickly denounces him as scum who is only involved for selfish reasons. He then offers to do everything he can to help Dixie track down her daughter, including finding out everything he can about Emma's background. David then takes a moment to put Ryan in his place by noting that although he does have a score to settle with most of the people in town, it's a ludicrous thought that a little girl who is Kate's age and freely admits that she is not related to her father couldn't be Kate simply because David is evil. Disgusted, he starts to storm out, but Ryan runs after him and refuses to let him leave. He asks David if his claims about Emma are attempts to try to worm his way back into Dixie's life. David admits that he isn't a hero, but also notes that he doesn't have to pretend to be one to make up for all past wrongdoings. Recovering from the assault on his character, Ryan simply says that David will stop hurting the people that Ryan cares about because if he doesn't, they will deal with each other directly.
Back in the room, Krystal asks if she really thinks that the little girl Annie claims is her own could really be Kate. Dixie admits that she is not completely sure, and would feel really bad if she was needlessly terrorizing a woman and her child. Krystal assures her that she has a good reason, and Dixie admits that she just wants to make sure her daughter knows that she didn't mean to give her away. In addition, she notes that if they can confirm that Kate is alive and well, it would provide a great measure of peace for Tad, especially when he didn't ask for the hell he has been living through. Krystal is curious as to why Dixie would be so concerned about Tad's state of mind when he recently tried to get her thrown in jail for murder, but before they can delve into a subject that Dixie is uncomfortable with at best, Adam pokes his head in and unthinkingly reveals that Krystal is pregnant. Krystal tries to breeze by the admission by hurrying her husband out of the room, but she isn't quick enough as Dixie repeats what she thought she heard and Adam confirms that Krystal is indeed three months along.
Fresh off the plane from France, Bianca immediately resumes her role as family peacemaker and pulls her sister and brother off of each other's throats. After a joyous reunion hug, Kendall asks if Bianca is ready to talk some sense into Josh. Bianca opts to give him a hug first, welcoming him to a life of Kane women. Josh shares his cranky mood with his little sister, but Bianca doesn't let it affect her. She notes that Kendall wouldn't go after Josh the way that she was if she didn't care. Kendall is briefly smug, but Josh tells her that blood relation or not, she doesn't have a right to try to run his life. Kendall then asks Bianca to explain to him why hooking up with Babe is dangerous but Bianca tells her that she and Babe are not mortal enemies. Astounded, Kendall then asks if she wants their brother sleeping with Babe. Taken aback, Bianca asks if she missed the divorce between Babe and JR. When she finds out that it didn't happen, she realizes the gravity of Kendall telling JR what she knows. She demands that Kendall promise their brother that she'll keep her mouth shut but initially, she can't do it. Bianca tells Kendall that if she goes through with it, she will lose the brother she just found. Thinking it over, Kendall finally caves and Josh fairly rubs it in her face. She starts to tell him that he can't mouth off just because Bianca has his back, but then backs down from that as well and goes back down to the Fusion offices. Incredulous, Josh turns to her and Bianca quickly promises that she will keep his secret as well. Josh tells her that he wasn't concerned about that - what he wanted to know was how she managed to shut Kendall down. Bianca chalks it all up to family love and says that it wasn't always this easy. She then admits that she's been in the loop about everything else because families communicate. Josh says that even though Bianca didn't call Babe her enemy, he knows that she doesn't agree with his choice. She tells him that she has gotten enough flak over who she loves to turn around and dish it out. She then tells her brother that loving Babe is easy, and that she understands that first hand. The problem is that Babe loves back hard in return and that it sometimes gets in the way of her common sense. Unfortunately, when that happens, sometimes Babe's choices can break other people's hearts. Josh swears that his heart is intact and tries to walk off, but Bianca stops him, saying that he needs to be aware of his own common sense as well. Josh denounces JR as a punk, and says that he would continue to go head to head with him to protect Babe. He asks where Bianca stands if given the choice between JR and his wife, and Bianca admits that she favors Babe, albeit marginally. Josh begs her to convince Babe to leave JR and be with him.
JR happens upon his father browsing through baby pictures of Colby in the living room. They briefly reminisce about what a force she was, even as a toddler and then quickly move on to the present situation. Adam questions whether Josh is really guilty, as his daughter claims, and JR reminds his father that Josh once hooked up with Dani, attempting to show a pattern. Though Adam duly notes that fact, he makes it known that Colby could be lying to protect the person she was really with. JR asks if Adam's skepticism was brought about by either of their wives, but Adam admits that he doubted all on his own. As a grown man who appreciates the beauty of grown women, he can't imagine the appeal that a teenager could hold. JR plainly tells him that it has nothing to do with Colby and everything to do with the Chandlers as a family paying for all of the pains Josh has suffered. He also notes that if true, Colby is paying for things that she had no hand in. Adam then questions JR's feeling about his sister's claim that Josh called her Babe. JR divulges that although Colby took the fall, the person Josh really wants is his wife. Adam tells him that the real question is whether or not Josh will actually get the girl. JR emphatically notes that Josh wouldn't get the chance because every time he tried to make a move, Babe shut him down. Adam suggests that JR shut Josh down by forbidding Babe to see him, but JR as much as laughs it off, noting that Adam should try that with his own Carey wife and report back the results. Conceding the point, Adam then wonders aloud if the convenience of Josh being guilty wasn't becoming more important than the truth. JR looks for clarity, and Adam tells him that life would be much easier knowing that Josh couldn't seduce Babe from behind bars. JR tells his father that listening to his doubts is like having a devil on his shoulder, urging him to do whatever it would take to get another innocent man thrown into jail. Knowing that they have no proof that Josh touched Colby, he asks Adam what their next move should be. Adam tells him that proof isn't their problem because that burden lies on the police. What they need to do is sit back, keep their suspicions to themselves and let Josh pay for the pain that they know he has caused their family.
Babe shows up at PVH, finds Sean and tells him in front of a small group of gawking boys that she needs him. He initially tries to act like a stud, intimating that she had shown up to hook up with him. Babe makes it clear that all she wants to do is find out what he knows about who Colby slept with the night of her Sweet Sixteen party. Sean gives her a lot of cocky answers, but in the end, tells her that he doesn't have the answers that she needs. Babe pleads with him to give her something to work with but, after spotting Colby's arrival nearby, Sean tells her that although he knows 20 guys that would admit to sleeping with Colby, none of them would be telling the truth. He then sees Sydney approach Colby and uses her, and a date they have planned, as a means to escape. Suddenly left alone with her sister-in-law, Colby bitingly observes that Babe running her mouth in a high school is like free advertisements for all of their personal business. She then asks if Babe is angry because she is back, and if that is why she keeps coming after her. Babe tries to take the focus off of herself by saying that Colby's deliberate plan to ruin an innocent man's life makes her a nasty bitch. Colby shoots back that Babe is a nasty slut, because the only way she can prove that Josh didn't take advantage of Colby is by admitting that she was having sex with him. Colby dares Babe to lie to her like she lied to her husband, and the only response that Babe can come up with is that she can't believe what could have happened to Colby while on the run to make her so hateful. Colby reminds her of when she and Jamie hid out with her and Liza when they were on the run with Little A, and how both she and Krystal have the Chandler men wrapped around their fingers. Colby admits that she wants the Carey women out of the house, and that whichever comes to light first - Babe's truth or Colby's version - Babe's lover will be out of the picture, and she will win.
At the penthouse, Erin tries to convince a packing Annie that she is sorry for what happened at the center, and that surely something can be worked out. Annie is unmoved, noting that no one will take her daughter away. She asks for the money that Erin has on her, and tells her that she and Jamal need to make her disappear. Erin hesitates because Jamal is away and she would need a little bit of time to get a plan in place for them. Not having time to spare, Annie begs Erin to donate her car to the cause and after a split second, Erin hands over the keys. Annie tells her that she is going to pack the car and asks her to tell Emma that they have a fun trip planned. She starts to head out the door but Ryan arrives at that moment and tells her that she isn't going anywhere.
Babe arrives at the office and instantly dives into work. Unable to control herself, Kendall asks if she came to the office for work, or for a noontime tryst. She continues to mildly taunt Babe, but Babe shoots back that she will not let her brother go to jail for something he didn't do. She knows that the current situation would be the perfect opportunity to get revenge, but Babe begs Kendall to let her deal with things in her own way. Kendall assures her that she wants nothing to do with her, and that her only stake in things is that she make sure Babe doesn't hurt her brother. Babe tells Kendall that she doesn't have to threaten her and that she can cross that worry off of her list, because she cares about Josh and only wants him to be happy. Grossed out, Kendall announces that they aren't bonding and that she'd heard enough. Suddenly struck with an idea, Babe grabs her purse and fairly runs out of the office.
Colby arrives home and gives her big brother a giant hug. She launches into her version of how Babe cornered her at school and loudly announced that Colby was conned into losing her virginity. She adds that she didn't need that kind of harassment in addition to trying to fit in at a new school. Attempting to add insult to injury, she starts to lament how coming home to be a family with her father and brother was turning out to be the biggest mistake of her life. JR hugs her again to get her to stop talking, and then reminds her that he is not their father, and that he knows she is lying. Colby is immediately defensive, insisting that she was telling the truth. JR tells her that he wasn't looking for her excuses - he just wanted to thank her. He tells her that they needed to get Josh away from the family and that she managed to do it without realizing it. Colby falls for his ploy, hugs him and asks what their next move would be if she admitted that Josh didn't touch her. She pulls away when he doesn't answer and turns to see that Babe had just returned home.
At Fusion, Kendall was distracted by thoughts of Zach. Meanwhile, Zach was at his office gazing at the divorce papers that Kendall had already signed. The image of Alexander Cambias, Sr. (Zach's father) appeared before him.
On the Fusion rooftop, Josh urged Babe to talk Bianca into leaving her marriage. Binks was resistant and when their chat disbanded, she came downstairs to talk to Kendall about Kendall's Zach woes. Their talk was interrupted by the arrival of Kendall's signed divorce papers. "Zach just gave me my answer," sighed Kendall.
At the Miranda Center, Dixie reeled from the news that Krystal was pregnant. Krystal sent Adam on his way so that she could privately insist to Dixie that her pregnancy was not the result of her one-night stand with Tad. After they left, David showed up and warned Dixie not to trust Ryan on account of Lavery's closeness with Annie. Dix was skeptical of David. He offered to kidnap Emma for her. "I don't even know if she's mine!" pointed out Dixie.
Ryan tried to stop a determined Annie from leaving town with Emma. Annie refused to talk to Ryan about Emma's father when Ryan pressed her and claimed to have no idea how Greg got Emma's picture. Ryan told Annie that he believed her and wouldn't let anyone take her daughter away. He gave her a comforting hug.
In front of JR in the Chandler living room, Colby challenged Babe to make good on her threat to expose Colby's lies about Josh. JR threw Colby out of the room so he could speak to Babe alone. Babe apologized to JR for having allowed Josh to come between them but insisted Madden didn't belong in jail. Josh showed up at the house; Colby snagged him before he could knock on the door and told Josh to go on in and expose her as a liar, since that would blow JR and Babe's marriage to bits. Josh wasn't biting so Colby pretended that Josh was attacking her and began screaming. JR, Adam and Babe were on the scene immediately. Babe announced that she intended to end this right now. She told Josh to leave. He complied. Babe faced JR, Krystal, Adam and Colby and said she could prove that Josh didn't touch Colby. "How are you gonna prove it?" questioned JR.