As Scott's kidnapping trial begins, Jake volunteers to testify that Rex is Serena's real kidnapper, but Lee tells him his testimony is hearsay. The prosecution alleges that Scott kidnapped his own daughter to ransom her and pay off his gambling and drug debts. The prosecution's first witness is the former nanny of Jason Quartermaine. She testifies that Scott married Jason's mother to get his hands on Jason's $1 million trust fund. Meanwhile, a distressed Serena is comforted by the spirit of her late mother Dominique. However, Dominique tells Serena that she's the only one who can see her. Julie learns from her bickering parents that her mother slept with Chris. An angry Julie confronts Chris and Eve thanks him for taking the heat off of her.

On New Year's Eve, an amorous Rex invites himself into Lucy's hotel room and overstays his welcome as Kevin hides in the bathroom. When Rex goes into the bathroom, Kevin hides out on the ledge. Rex snoops through Lucy's medicine cabinet and swipes some of her pills. Scott and Eve share a New Year's kiss but Scott abruptly calls a halt to any further passion. Later, Dominique's spirit visits both Serena and Scott in their dreams to say good-bye and Dominique encourages Scott to get on with his life. After basking in the afterglow of making love, Julie tells Frank she wants to keep their affair secret. However, her plans are ruined when Eve catches her coming out of Frank's bedroom half-dressed.

Rex learns Lucy has been taking fertility pills and surmises Lucy faked her break-up with Kevin. Lucy meets with Rex who suggests they going into business selling stress-relief pills and Rex gives Lucy a sample bottle. Later, Rex plots to switch Lucy's sample bottle with poison pills. At Scott's trial, more damaging ""testimony"" against Scott is heard, including testimony from a reluctant Eve, who testifies that Scott appeared under the influence of drugs, backing the prosecution's claims that Scott was a drug user with outstanding drug and gambling debts. Eve apologizes to Scott and invites him out to dinner. Alice has another heart attack and has to have immediate surgery.

During a business meeting with Rex, Lucy agrees to go into business with him selling stress-relief pills. Subtley, she confirms that Rex has not been in the Cayman Islands recently. Rex tries to convince Lucy to admit phony photographic evidence against Scott as an eyewitness in his trial and, later, Lucy discusses her dilemma with Kevin. Meanwhile, an unknown person breaks into Lucy's hotel room and switches her stress-relief pills for other pills. Chris treats Lark for a suspicious head injury and Joe and Karen recognize her as one of Frank's students. After Lark's mother comes to the hospital, they suspect her of physical abuse and call social services. Winston tells Matt the history of Ellen's animosity between her mother- Ellen married a man who her mother didn't approve and dropped out of medical school to put him through law school. Later, Ellen tells Winston that her husband Sam died. Eve surprises Scott with a dinner with Serena. Scott and Serena discuss the same drea

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Picking up where the 6/22 episode of ""General Hospital"" left off, a dead body is found hanging from the rafters at the Nurses Ball and discovered to be Jake. Chris suggests to Eve they provide alibis for each other since they both don't have one for the time of Jake's death. Accusations fly wild as everyone argues about who is the culprit. Garcia brings in Lark, who was found hiding at the Ball. Garcia announces everyone is a suspect and questions all party guests. Later, Mac and Kevin find evidence in Jake's apartment, including a suicide note, which leads them to conclude Jake was the ""General Homicide"" killer.

The newspaper reports Jake was the ""General Homicide"" killer and the D.A. drops the murder charges against Julie. Frank visits Lark at the juvenile center and, after she blackmails him into getting her released by threatening to reveal his DL-56 use, he asks for Scott's help. After Jake's death, Karen vows to stop the DL-56 research much to Frank's dismay. After Kevin and Scott berate her for leaking Eve's past as a hooker, Lucy offers her an insincere apology. However, Eve, humiliated when her secret gets around, replies with harsh words. After Lucy learns Eve took her place at Serena's scout meeting, Lucy declares war.

A recovering Kevin receives two surprise visitors. First Lucy comes by and the two say a heartful goodbye and close the door on their relationship. Eve then comes by, intent on declaring her feelings for him, and surprises him with a dinner for two. However, she misinterpets Lucy's visit and leaves. Later, Kevin catches up with her and invites her back to his place. Ellen gives Chris the date for his review board hearing. Lucy returns home and is given a surprise belated Christmas by Scott and Serena. Scott tries to give Lucy an out to their relationship, but she declares Scott and Serena are her family.

While trapped on an island, Joe and Courtney remember old times, then repair a raft to escape. However, Courtney twists her ankle before they depart the island. An old nemesis of Victor's traps him and Mary in the back of moving truck and plans to kill him. After failing to use laughing gas to overpower him, Mary personally appeals to the man, who agrees to help them because of his hatred toward Mr. Kanelos. After thanking Karen for her support during his withdrawal, Frank and Karen realize no one's heard from Joe and Courtney in Greece. They contact Mrs. Kanelos, who denies they are there.