Jo is embroiled in a custody battle with the Carters (Reed's parents), who want to take their (yet unborn) grandchild away from the woman who "murdered" their son.
He becomes involved with married, closeted plastic surgeon Paul Graham (David Beecroft), who murders his wife in the season finale and frames Matt.
Unable to exonerate herself for Michael's attempted murder, Sydney became an outcast from this point onward for the rest of the series.
Sydney is sexually harassed and abused by Chris Marchette, Jane's sociopathic Australian business associate.
After embezzling most of the funds from Jane's business, Chris fled the country after losing the stolen money gambling in Las Vegas (with Sydney his hostage).
A conniving sociopath, Rikki convinces the Melrose residents that Sydney is destroying their possessions and encourages her to join a cult led by Martin Abbott (Remy Zada).
Jealous of their romance, Sydney reverts to her devious self and breaks them up and avenges herself on Michael and Kimberly by extortion (using the money to control Jane's design business).
Jake reconciles with Jo and reunites with his auto-mechanic half-brother, Jess (Dan Cortese), when their mother dies in their hometown.
When Jake learns about the attack in the season finale he and Jess fight, falling off the edge of a high platform at a construction site.
Amanda becomes involved with Wilshire Memorial's chief of staff Peter Burns, who helps her take over D & D by buying stock.
When D & D president Bruce Teller (Stanley Kamel) is ousted he commits suicide, and Amanda replaces him.
However, Alison could not cope with the sudden responsibility and workload and she quickly became aggressive, ruthless, heartless, and assertive just like Amanda.
He is bailed out by Peter Burns (who got out of prison for Amanda's attempted murder), who needs his and Kimberly's help to retain his medical license.
Kimberly promises to serve as Syd's alibi, then refuses to cover for her and plants a blonde wig at her apartment.
Billy becomes angry when Alison agrees with Amanda's advice and decides to prosecute her father instead of going to Las Vegas to elope.
He takes in a beautiful woman named Brittany, who had jumped overboard following an argument with her abusive husband.
Sydney's father flies in from Chicago, but enrages his daughter by suggesting she seek a plea bargain.
Alison confronts her father in front of all the prominent townspeople at a barbecue, and pushes him into admitting his guilt.
Billy is fired when Nancy learns that he helped D&D get the inside track on the Escapade account, but lands a job writing ad copy for D&D.
Sydney accepts a plea bargain after a scummy staff member propositions her, and is released into Jane's custody.
The Coast Guard finds Jake clinging for life to a buoy, and he returns to the building safely.
Jo is hurt when Jake completely ignores her to visit Amanda, unaware that he is breaking the news of Palmer's death.
Jake apologizes for abandoning Jo, then learns from the FBI that he is to receive a large reward for assisting with the capture of Brittany.
Chris continually makes unwanted advances toward Sydney, but Jane believes her sister is just trying to cause trouble.
Alison gets drunk at a client party and leaves with a hard-living music business scout named Zack Phillips.
Bruce suffers a heart attack while dancing at the event, and Peter suggests that Amanda use the opportunity to seize control of the agency.
When Jo shows up at the beach house to take the baby, Kimberly insists that the boy is her child.
Michael tries to scam the city out of a million dollars by claiming that poor road conditions caused his and Kimberly's accident.
Michael ships Kimberly to Rochester for a job interview so that he can move Amanda into the beach house and watch over her.
Jess steals a credit card from one of the customers at Shooters and uses it to pay for a dinner with Jake and Jo.