Michael proposes to Kimberly again and she gets him to fire Sydney from their practice. But Sydney decides to even the score by filing a lawsuit against both Peter and Michael for sexual harassment. Peter convinces Alycia that he loves her and asks for her help to entrap Bobby in a monetary incident with a U.S. Senator. Meanwhile, Jane becomes peeved when Jo accidentally takes her sketch book of her latest designs and leaves it in Richard's office where he takes advantage of the incident and steals the ideas for himself. Billy starts acting more aggressive at work when he uses Alison to look bad to net a new account to land it for himself. Also, Alan finally discovers the intimate relationship between Matt and David.