Jade walks into Java to find Maddie wielding a butcher knife menacingly because she sees Casey kissing Lia. Maddie leaves and sees a car with the license place 2FUNLIA, which triggers terrifying memories. Maddie hacks at the car's upholstery with the butcher knife, and the car turns out to be Lia's. When Casey rushes out to stop Maddie, she turns of him in fury, but he calms her down and tries to help by getting her to open up to him.
Barbara turns over Will's trust fund to him. At first Will is skeptical, but Jessica arrives with the papers, and Will now has the money, with no strings attached. After Will and Gwen excitedly make plans to buy a house, start a foundation in Jennifer's memory, and resume their educations, Will thanks Barbara and hugs her.
Simon lures Lucinda to the Athletic Club, where he tells her that he plans to settle down in Oakdale with an investment business. A delivery man brings Katie's lost wedding ring back to Katie and Mike, accompanied by an innocuous note from Simon.
Emily appears before a judge, with a deal in place for her to plead guilty to Dusty's kidnap and attempted murder. Dusty inters the courtroom just before Emily changes her mind and pleads "not guilty." When Dusty announces to Tom Hughes that he will refuse to testify against Emily, the judge dismisses all charges against Emily and releases her. Paul makes a desperate attempt to keep Emily locked up by telling everyone that she shot him, but the Tom Hughes refuses to prosecute Emily because there is no evidence to back up Paul's claim.
With Lucy's help, Damian arranges for Luke to visit Lily while Holden is not around. Luke laments to a comatose Lily that if it weren't for Damian, no one would be on Luke's side. Later, Lucy wonders why Damian didn't encourage Luke to see Holden. Meanwhile, Luke gets dragged out with Kevin and two girls. Emily tells Paul he can't control her anymore. Paul asks Dusty if he understands what he's done by setting her free, and Dusty replies that he absolutely does. Emily was originally Paul's problem, and now she's Paul's problem again. Dusty wants nothing to do with her. Dusty tells Emily the same thing when she tries to thank him. Meanwhile, Meg urges Paul to stop obsessing about Emily and focus on them. When Barbara hears that Dusty let Emily off the hook, she is horrified. As Jade is telling Gwen she thinks Maddie set the fire at Crash, Margo and Dallas are arresting Maddie for slashing Lia's car. Casey wants to go to the station with Maddie, but Lia fakes some tears. Margo gently asks Maddie why she did it, and Maddie sobs that she doesn't know. Margo, probing, asks Maddie if she was ever sexually assaulted.
Lucy admits to Holden that she distracted him while Damian brought Luke to see Lily. Holden and Damian spar, but a crisis with Lily's baby interrupts them. The baby is breech and they need to try to turn it, ASAP. Meanwhile, Kevin's friend, Ada, says Kevin told her Luke wasn't into girls. Luke is stunned that Kevin understood, but is disappointed to learn that Kevin thought it meant Luke was only interested in "women." Ada also pulls out a bottle. When Kevin tells Luke that any normal guy would be thrilled to score with Ada, Luke drinks. He rejects Ada's advances and runs off, driving drunk. He crashes. Maddie considers confessing her past to Margo when Henry arrives with their sister, Eve. Everyone, including Dallas, urges Maddie to come clean, and she finally confesses to having been raped at a college frat party back in Chicago. She claims she doesn't remember the man well enough to describe him. Maddie begs Margo not to tell Casey. She doesn't want anyone to know. While Vienna wonders why Simon chose Oakdale to settle down in, Katie and Mike huddle with Carly to review her plans for a new, interior design business. Later, Simon eavesdrops on Carly making her case to a loan officer. The man tells her she needs someone to cosign her loan. Carly suggests Mike and Katie, which piques Simon's interest.
Carly is shocked when a mysterious benefactor eager to fund her design business turns out to be Simon. She wants him to get lost. Simon counters that he is her only shot. Carly doesn't bite, sends him away, then reveals to Katie her ex is back in town. Katie rushes home to tell Mike, but is too late – Simon is already there. Mike slugs him just as Katie shows up. At the hospital, Holden wonders where Luke is as his son sits slumped over the wheel of his car after another drunken driving incident. Jack is the cop who finds him. He calls Holden and tells him he'll have to take Luke down to the station. Holden can't come because of the tenuous situation with Lily and the baby, so Damian volunteers. Jade realizes that Will getting his trust fund means he and Gwen will be moving to their own place soon – without her. Will tells Jade he wants to give her some money to find a new place – not because he thinks she'd blackmail him, but because they're friends now. Meanwhile, Lia plays up to Casey by agreeing with Margo's suggestion that she drop the charges against Maddie. Margo gives Maddie the news, then insists that she needs to keep her distance from Lia – and Casey. Maddie ignores the order and goes looking for Casey. She finds Gwen (and an eavesdropping Jade). Distraught, Maddie blurts that Lia is doing to Casey the same thing Jade is doing to Will! Gwen doesn't believe it. Maddie runs into Lia, who taunts that Casey wants nothing to do with a nut-job like her.
Inside Crash, Gwen asks Will why he's being so defensive about Jade and tells him she wishes he had talked to her first before deciding to give Jade money to find a new place to live. She tells him that money changes people, and she doesn't want that to happen to them. He tells her from now on, they'll make all financial decisions together. He asks her what Maddie said to her about him and Jade that got her so upset; she tells him Maddie said they looked guilty when she walked up and saw them hugging, and she asks if she has any reason to worry about him and Jade. He says absolutely not, and he assures her the hug was friendly, and that's it. Gwen tells him she knows that he'll never lie to her again after what they've been through.
Jack brings Luke into the police station for arraignment, telling him he'll be charged with driving under the influence. Luke tells Damian exactly what happened, saying how much he feels like an outsider because his friends don't know he's gay. He tells Damian that he wishes he could go a thousand miles away and start over again with people who know nothing about him. A lawyer hired by Damian arrives and discusses the case with Luke while Damian waits outside. Jack tells Damian that Holden called to say Lily and the baby are fine for now and he's on his way down for Luke's arraignment. By the time Holden arrives, however, Damian tells him Luke has already been arraigned and is about to be released into his custody to go home. Holden is very angry with Damian, accusing him of conspiring to make him look bad with his son and to split them up. Luke comes into the room and tells Holden to stop, that Damian isn't the problem here --- Holden is. Holden tells Luke that he thinks Damian has been lying to him, trying to tell him that Holden didn't want anything to do with him when the opposite is true, but Luke glances at Damian and then tells Holden that Damian never led him to believe that Holden didn't want him around --- Holden did that all by himself. Holden apologizes for Luke having felt that way and tells Luke he just wants him to come back home. Luke apologizes about the drinking and tells Holden he and Lily deserve better from him, but right now, with Holden having so much on his plate, he thinks it's best if he doesn't add his baggage to the situation, and he tells Holden he's staying with Damian. Holden leaves, and Damian tells Luke that if he really meant it about going thousands of miles away and starting over, he can make that happen by taking Luke to Malta with him.
Carly's credit card is declined when she tries to pay for the opened $300 bottle of champagne at the Lakeview, and the waiter goes to get Lisa. Lisa tells Carly that she'll take a personal check from her, but Carly confesses her bank account is empty and she's been living off of her credit cards recently while she tries to get her business started. Jack shows up in time to hear this, and Lisa admits to having called him when she heard Carly was having problems paying her bill. Carly is upset that Jack was called, telling them both that Jack is not responsible for her anymore. Jack tries to give Lisa money for the champagne, but Carly tells Lisa not to touch Jack's money. She tells Jack, "You are not my husband anymore---I don't need you!" She tells Lisa that she'll wash dishes to cover the bill, but Lisa tells her this isn't the "I Love Lucy" show, and Carly can't just waltz into the kitchen and start washing dishes. After Carly again tells Jack that she doesn't need to be rescued by him, he responds, "You can wash dishes till your fingers shrivel up; I won't offer my help again." He leaves, and Lisa apparently has a change of heart, because later, they come out of the kitchen, having washed all the dishes together, with Lisa telling Carly that every "Lucy" needs an "Ethel." Lisa suggests they finish that champagne now. They sit down to drink, and Lisa asks Carly what she's going to do now to make ends meet; as Carly begins to respond, she sees Simon walk into the room.
At Mike and Katie's house, Mike punches Simon as Katie arrives. Simon tries to convince them that his being in town has nothing to do with Katie, but they are unconvinced, and they also don't believe him when he says he's rich now because he struck oil on his sheep ranch in Australia. Mike goes inside to call Jack to ask him to check out Simon's story, and meanwhile, Katie begs Simon to stay away from her and from her friends, telling him tearfully that she just can't stand the thought of running into him repeatedly on the street and having to make chitchat. Mike comes back, and Katie asks Simon again to stay away from her friends, especially Carly, and Simon says he will. He leaves, and later, Jack comes by and tells Katie and Mike that Simon's story about the oil checked out, and Simon is indeed now a very rich man. Katie warns Jack that Simon might be trying to get in good with Carly; Jack says that's none of his business, but Carly is too smart to get involved with Simon.
Lia runs into Maddie outside Crash and tells her that she's with Casey now, and Casey doesn't need someone who's going to "go postal" every 10 minutes. She tells Maddie that she and Casey are even planning to break into the country club tonight to go skinny-dipping. Casey calls Lia on her cell phone, and her side of the conversation is designed to make Maddie think that Casey is "hot" for Lia and can't wait to see her, even though Casey is actually telling Lia that he's having second thoughts about their plans. Lia tells Casey she's on her way, then she hangs up and tells Maddie not to worry about the damage to her car, because her dad has already ordered a new BMW for her. Maddie, angry, goes into Crash and takes one of the knives out of the knife block. At the country club, Casey tries several times to get Lia to leave, both before and after they go swimming, but Lia wants to stay and take a hot, steamy shower with Casey. Casey bows out, and Lia tells him he can go if he wants to, but she's going to take a shower anyway. Casey leaves, and when Lia hears someone approaching, she assumes it's Casey coming back. She calls out to him, but no one answers, and when Lia pulls back the shower curtain, she sees someone with a knife standing over her. As she screams, she is stabbed repeatedly, falling to the shower floor dead.