Sharon held Victor's hands while trying to discuss what was going on between him and Nicholas. When Nicholas walked in and saw them, he was livid and told Victor to get out of his house immediately. Hearing this, Victor suggested they just talk and get everything out on the table. He added that he was sick of being his whipping boy, and that he didn't take it from anyone, especially not from his son. He said he didn't feel as if he even knew Nicholas anymore. Nicholas replied it was sad, that he felt he knew Victor better than ever. Victor left, paused outside the door, and looked puzzled. Sharon admonished Nicholas for his behavior, but he was more interested in insisting she support him. He told her Victor was going down, and he didn't want her going down with him. Sharon tried to urge him to talk with Victor, but he was not interested in listening. He told her Victor wanted to win, no matter what, no matter who it hurt. He concluded by telling her he was going to deal with his father the way you would deal with any criminal, and he expected her to stand by him.
Paul was on the phone talking business with Lynn, when Chris walked into the apartment. She told him she had come home to change into something more conservative like the other women in the DA's office, but when he looked up at her, he was imagining her in lingerie. As she chattered on, he kept staring at her until she noticed and asked what he was looking at. Later, he went into the office and was distracted while talking with Lynn. She tried to talk with him about something, but he commented that he was distracted and really didn't want to talk about anything. She was trying to tell him that Lauren was waiting for him in his office, but he found out by surprise instead. To cheer him up, Lauren had brought him a copy of a calendar from 1986--one that featured a nude photo of Paul. They had a good laugh about it, and Paul told her it was good that she cheered him up. She guessed he was having problems in the bedroom with Chris, and he told her he was frustrated with the one-sided feelings. They ended up reminiscing about their past and it led them to start kissing.
At the club, Neil and Dru spotted Damon and Vanessa talking at the bar. Dru couldn't stop staring and commented on how personal their body language looked. Neil tried to get her to stop, but she her curiosity was too strong. He excused himself to go work out, while she stayed to try to eavesdrop.
Vanessa told Damon about what she discovered, strictly by accident. She told him she wanted him to take on the product to see if it could be mass produced, as she felt its potential could be mind-blowing. He hesitated a bit, but promised her he would think about it. After she left, Dru went over to talk to Damon to find out if he was being recruited away. He told her his friend Vanessa had discovered something amazing--a product that could be put in shampoo that could straighten hair until washed out. Dru was amazed, and Damon said he would think about how he could use it to help Jabot.
Meanwhile, Phyllis caught up with Neil in the weight room and wanted to talk about Victor. She told him she wanted to talk to Victor about what was going on between he and Nicholas, but Neil highly discouraged her from doing it. She said she felt she owed it to him to try to talk it out, but Neil stuck to his guns, telling her she would get hurt.
Phyllis didn't take Neil's advice. She went to Victor's office and asked if they could speak openly. She told him she felt strongly that something bad was about to happen with him and wanted to talk about it. She asked him if he did anything to help Safra do better out of the gate. Looking a bit scared, she went on to say that Tuvia simply should have done better than it had, and had to wonder if he had done anything. She told him that sometimes it was better to handle things before they got out of control, and told him she wanted to help him.
Nicholas had a meeting at the federal prosecutor's office. He was vague at first, not giving any specific details. The prosecutor told him this was serious--that once this all got started, there was no turning back. Nicholas told him all of the details relevant to the case, and stopped short when he was asked who was the person behind the schemes. He paused before saying, "My father, Victor Newman."
Nick names his father and Michael Baldwin as conspirators who bribed department stores to give Safra an advantage. When the DA picks up on Nick's anger he questions him as to his motives. If it's a family squabble he needs to know now. Nick assures him he wants justice. He's thought about it and can't get past something illegal. He will not change his mind.
Colleen and J.T. are working out. She has flashbacks to being locked in the freezer. She admits to J.T. about not sleeping well(nightmares). She asks about the fire and how bad it was.
Kevin is questioned by Det. Webber. Webber wants to know why Kevin deleted major portions of his motherboard. Kevin threatens to sue the police for harassment. Webber serves him with a restraining order to keep away from Lily.
Olivia stops by to tell Lily about the tests they ran; she tested positive for an STD. Lily freaks. Olivia assures her it is not AIDS and she is also not pregnant. She assures her that everything is confidential and won't be reported to Dru or Neil. She tells Lily she knows she lied about using a condom. She tells Lily about the morning after pill. If only more teenage girls knew about it. Lily has chlamydia. Because she was tested and it was found on time, it is readily treatable. Live tells her this is not the defining moment of her life. She will get past it with support of her friends, her parents and her favorite aunt. Lily thanks her.
Paul and Lauren enjoy a friendly kiss. He talks about how busy Chris' life is now thanks to her new job. He wonders where he fits into her life now. Lauren points out how different their own lives have gotten but still important to each other. She leaves him with that thought.
Michael helps Chris move some of her things. She tells him about the distance between her and Paul. When Paul arrives home she wants to go out but he tells her he's not in the mood. He knows she's not ready to move forward. They wonder what this means for their future. He offers to move out.
Phyllis convinces Vic to confide in her. He admits that people were induced to help Safra out at the expense of Tuvia. Phyllis is relieved that is all it is and isn't worried at all about 'the sky falling'. She thinks it's no big deal at all. Victor explains that it's much bigger than minor rewards. While he thinks it's nothing more than business practice some people will see it as a criminal act. He can't believe her told Jack Abbott's wife this and swears her to secrecy. She promises to keep it from Jack and offers to be a shoulder to lean on for him. When he thanks him for taking her into his confidence he tells her not to make him regret it. Later Michael stops by and is surprised to see Phyllis. He covers to explain his presence there. She explains that she knows what he's really up to with Victor.
Nick is seated at the athletic cub bar. Victor sits beside him for a dink.
Colleen decides to sift through the wreckage. She can't believe the extent of the damage. She finds the freezer and flashes back again to being locked inside. When she turns around she is startled to see Kevin standing there.
Neil told a contemplative Lily that he was sorry for getting home later than he'd expected. Lily admitted that she hadn't been alone; Olivia had come to see her. When Neil wondered if she was there as Lily's aunt, Lily said no---as her doctor. She confessed that she had lied to her parents about something. She and Kevin hadn't use condoms, and now she had a sexually transmitted disease. After an initial explosion, Neil was relieved to hear that Lily hadn't tested positive for HIV and wasn't pregnant. She was taking an antibiotic for chlamydia. After Neil agreed to keep the news from Dru, for now, he asked Lily for a favor. He wanted to go to the police and file charges against Kevin. Lily said she'd have to think about that.
Colleen was working out near J.T. at the athletic club when she kept flashing back on her ordeal at the fire. J.T. tried to comfort her, but Colleen couldn't shake her bad memories. She was even having nightmares. If Kevin had really done that to her... J.T. interrupted and said Kevin had done that to her; there was no question. They arranged to meet at Crimson Lights later, but when J.T. arrived, he found only Sierra studying for a test.
Colleen was going through the burned down Gina's Restaurant with a flashlight, horrified by how destroyed it was. She went back to the cooler and remembered being locked in. Distressed, she turned to leave, only to come face to face with Kevin. As she tried to maneuver around him, Kevin insisted that she listen to him. He said he wasn't responsible for the fire and hadn't tried to kill her. Even the police couldn't prove anything; they'd returned his laptop to him after finding no evidence on it. Colleen said of course he'd destroyed the evidence, but even if the police didn't get him, karma would. When Kevin appeared more menacing, Colleen backed down. She said she was just worried about Lily. Kevin wasn't buying it, but he did have a message for Lily. There was a restraining order against him, so Lily should make no attempt to see him. Colleen managed to get to the front of the restaurant then screamed back at him that he would pay for what he'd done.
J.T. and Sierra were relieved when Colleen arrived at Crimson Lights, but J.T. was upset to hear that Colleen had gone by Gina's. It was even worse when he found out that Kevin had confronted her there. As Colleen sobbed with fear against his chest, Sierra watched them with a worried look.
At the health club, Victor tried to talk reasonably with Nick, who remained cold to his father. Victor insisted that everything he'd ever done had been for his family. He couldn't understand Nick's disrespectful attitude. Had he no appreciation for all his father had given him? Victor was proud of Nick; why was Nick so contemptuous of his father? When Nick asked if Victor really thought he should emulate all of Victor's behavior, Victor had heard enough. He said that he could no longer mentor his son. Nick asked if he wasn't even interested in what his son was thinking, and Victor ordered him out of his sight, confirming Nick's accusation that Victor only wanted to talk, never to listen.
Michael was less than pleased to hear that Phyllis seemed to know something about his and Victor's nefarious activities during the Safra rollout. Although he managed not to give her details, he couldn't believe that Victor had been foolish enough to trust Jack's wife with any information. Phyllis said that she wasn't going to tell Jack. In fact, she intended to be a friend to Victor if Nick caused trouble. But both Victor and Michael were apparently in a lot of trouble if Nick really knew anything of substance. After she left Michael alone in the office, Nick came in. Michael wanted to know what Nick thought he knew. Nick toyed with him, saying that didn't Michael understand that if he had an ace up his sleeve that would destroy Baldwin, he'd use it?
Victoria was annoyed when Sharon came in when it was nearly time for the family meeting that Nikki had called. She suggested that Sharon leave at once. Sharon said that it was typical of Victoria to side with her mother without even hearing Sharon's thoughts on what was going on with the family. She knew that Victor was troubled by Nick's behavior, and Sharon thought there was reason for alarm. She'd never seen Nick so angry, and she was on the same side as Victoria. She didn't want Nick to do anything to tear the family apart. When Victoria pressed her for details about Nick's plans, Sharon admitted that she didn't know any specifics. She was just worried about the whole thing. Nikki came in and thanked Victoria for being there, then ordered Sharon to leave. Victoria intervened, telling her mother that she thought Sharon should stay.
Christine was shocked that Paul intended to move out just because she couldn't accept his proposal. She insisted that her hesitation wasn't because of what happened the night of Ricky's christening. She just needed time to sort through her feelings. Paul said that Christine might be able to settle for friendship, but he couldn't live there as her friend. He wanted more, and it was torture for him to be there and not be able to share a bed or his life with her. So moving out was the best solution for him. Christine begged for his forgiveness. Paul said there was nothing to forgive, then left.
Colleen told Sierra and J.T. that Kevin showed up when she went to Gina's. J.T. was enraged and tried to leave to find Kevin but Colleen convinced him to stay. She told J.T. that she doesn't want things to get worse than they already are. Colleen said that Kevin didn't do anything to hurt her; he just wanted to give her a message for Lily. Lily showed up in the middle of their conversation. While at first it was a little awkward, Colleen and Sierra wanted Lily to stay. J.T. said he would leave them alone. Lily told Colleen that she was sorry she didn't visit her in the hospital, and that she was sorry for the way she had treated them. Lily said that seeing her parents look at her that way really hurt her. She realized now how much her parents cared for her. Colleen said that her dad wants Kevin to pay for what he did, but Lily might have to testify against him. Lily said she would do whatever it took to make sure Kevin gets what he has coming to him.
Kay and Esther have dinner at the club to visit with Gina. Gina is happy about her new job and says she doesn't know what she'd do without John's help. Kay says John is a good man. Esther can't stop complaining about Kay letting Jill stay in that house. Gina says Jill will soon realize that she misses Kay and will soon feel all alone. Esther doesn't think so; she tells Kay if she thinks Jill will come around, she's lost her marbles.
Jill wants her decorator to change the entire house before Christmas. Larry comes in and tells Jill that she has changed ever since Kay left. Jill doesn't think so; she says the only thing that has changed is that she is now free, and that she wants the house to feel more like herself, and be more modern. Jill has her own chef now, a good-looking male. Larry doesn't seem too happy about it. When Jill tells Larry she wants a drink, Larry thinks she is moving too fast. Jill tries to comfort him, and after they share dinner she sends the chef home, and tells Larry they have the whole house to themselves now. As they begin to make love in the living room, Kay walks in unannounced.
Kevin is yelling on the phone about Bobby's taxes. After he gets his aggressions out, Kevin goes over to his computer and smiles. As he starts chatting online, he thinks about when he convinced Lily to prove her love by having sex with him. It's so easy, Kevin says aloud, as he chats with a teen about music. He asks her when they can meet to talk about it more. She says she would like that. Kevin apologizes out loud and starts deleting the information on the computer so Detective Weber can't find it. Kevin hears a knock on the door. J.T. screams at Kevin, telling him that he told Kevin to stay away from Colleen. He tells Kevin that he's going down.
Michael tries to get Nick to talk about all the rumors going on about Safra. Michael says he felt intimidated when Nick told him that he was on to him at the Gala. Nick says if he knew something he would have already done something about it. When Nick leaves, Michael wonders if Nick really doesn't know anything. On the other side of the door, Nick says aloud that he wouldn't tell Michael anything when he has a thorough lawyer to do it for him.
Sharon is upset that Nikki wont let her stay for the family meeting. Victoria realizes that Sharon might be a help in calming Nick, and convinces Nikki to let her stay. Nikki finally gives in and goes upstairs to change. Nick shows up and tells Victoria and Sharon that he has something to tell them. He wants to warn them that he has done something that will affect Victor and the family in the next couple of weeks. As Victoria angrily demands to know what Nick has done against her father, Victor comes in before they can discuss it any further. Nikki walks in and they begin the family meeting. Victor tells everyone that his father is alive, and although Nikki thinks he should go to see him, he refuses to.
At the Newman ranch, Victoria agreed with her mother that Victor should go and see his dying father. Victor said he'd have closure when that man was six feet under. Nikki said something good might come of the visit, and Victoria reminded him of their recent conversation about the importance of family. Sharon interceded, saying that her father, too, had abandoned his family before he died. If she could have just fifteen minutes with him to get some answers, she'd take that. Maybe Victor didn't feel the same way, but he should at least consider what Nikki was advising him to do. Nick told them to leave him alone. Victor obviously wanted nothing to do with his father, and Nick could understand his feelings. Victoria jumped on Nick for his disloyalty and anger, and the two began to fight. Victor interrupted. If seeing Albert Miller would bring any peace to this war that was going on in the Newman family, he'd go to Toronto to see him on one condition. He wanted Nick to go with him.
After Katherine interrupted yet another attempt by Jill and Larry to have sex on the couch, Jill accused her of having lied. She'd known her mother hadn't really meant to leave her alone on the Chancellor estate. Katherine denied it, but said she hadn't expected Jill to redecorate it to look like a brothel. When Larry sided with Katherine about the way Jill was acting, Jill stomped out of the house. Katherine noticed Jill's half-filled liquor glass and wondered if Jill was drinking alone a lot. Larry said he didn't think Jill had a problem, but Katherine confessed that she was an alcoholic. She'd once drunk herself into oblivion in that house, alienating everyone who loved her. She worried that her daughter might be repeating an old pattern. She wanted Larry to keep an eye on Jill. Larry didn't know if that was going to happen, because he and Jill were not as close as they used to be.
Jill stopped by the athletic club to brood about Katherine and have another drink. At the bar, she met Bobby Marsino. The two flirted a bit, then Jill invited him back to her place. When Bobby commented that she didn't waste any time, she said that she wasn't coming on to him. It had been a long time since she'd made a new friend. She wanted to continue to drink and talk, but didn't want to drive after she'd been drinking. Bobby agreed to go home with her and paid for their drinks.
When Brad went to pick up coffee and a sandwich from Crimson Lights, he told Colleen that he'd been at the hospital and Ashley was coming around. Then he joined her at the table where she'd been sitting with Lily and Sierra. He was glad to see the three girls working things out. Lily apologized to him for being so stupid about Kevin, and Brad said he was just glad he was off the streets. Colleen had to tell him that Kevin hadn't been arrested. There'd been no evidence found at Gina's to implicate him, and the hard drive on his computer had been wiped clean. Enraged, Brad told the girls to go to the Carlton house and lock the doors. He was going to do something about Kevin.
At Kevin's, J.T. burst in and told Kevin he was going down. Kevin tried to get out of the apartment but J.T. blocked him. Then Kevin reached for the phone and J.T. hurled it across the room. After throwing a few punches at Kevin, he had him down on the couch when Detective Weber showed up. Kevin wanted J.T. arrested for assaulting him, and J.T. said he'd been set up. Weber took both of them to the police station to get their statements. When Brad came in, demanding that the police arrest Kevin for attempting to kill Colleen, Weber said they had no evidence. J.T. again accused Kevin of setting him up. He knew that J.T. would come after him once he heard what had happened. Brad was shocked to hear that Colleen had gone to Gina's and been scared out of her wits when Kevin confronted her there. Weber kept him from going after Kevin again. The detective then told Kevin that he'd pursued smarter men than him. They always made a mistake, and he always got his man. He then read J.T. his rights and told Kevin to leave. Brad stopped Kevin, warning him that he hadn't gotten away with anything. When he closed his eyes at night, he should remember that a very angry father was after him.
Phyllis stopped by to see Michael, who assured her that her fears about Nick were unfounded. Nick had nothing on him; if he had, he'd have already used it. As the two talked, Michael inadvertently revealed that the work he'd done for Victor involved bribing retailers for premium shelf space. Phyllis gloated for a minute that she'd gotten him to confess, but she said that Jack wasn't going to learn it from her. She asked Michael to dinner, but he had too much work on his desk now that his partner had left the firm to work for the D.A.'s office. After Phyllis warned him to be good and left, Michael immersed himself in work. When he finally looked up, he was startled to have a visitor. He asked when he'd gotten into town, and Kevin said, "Hello, big brother. Long time no see."