Michelle goes to Maria to talk about Maria stealing her designs. Maria laughs it off and gives Michelle a copy of a dress design she claims she drew years earlier and chalks it up to coincidence. She tells Michelle she believes in her as a designer and gives her until the next day to finish her designs for the Face of Gianni show. She then calls in Lexi to ask for a padded envelope, intending to make John Cotter believe that she never opened the incriminating audiotape he sent to her. John later walks in a meeting she's having with her lawyer, Clive, on how to save her company, and makes it very obvious that he's the one who sent the tape. Michelle calls Michael to make sure the Face of Gianni model walk-off is set for the next day. After hanging up with Michelle, Michael tells Luke, who is sitting with him, that he can't come to the shoot. Luke grumbles about his problems, then says it bothers him that he can't remember anything about the night he spent with Lexi. Michael asks if maybe Lexi roofied him, and Luke says Lexi doesn't have a bad bone in her body. Michael tells him that until he figures out concretely what happened, Michelle isn't going to forgive him. Despite their best efforts, Maria and Clive are unable to come up with a way to pay William back. The next morning, Maria goes to Luke's studio to talk to him, but he angrily tells her needs to spend time away from her to think things through and asks her to leave. At the Face of Gianni walk-off, Michelle and Michael explain the process to the models. Tania shows up, expecting that she's already in, but Michelle tells her she has to earn her spot like everyone else. Michael tries to pep Tania up with compliments, but Nikki walks in and hears everything. At the walk-off, Tania deliberately collides with Nikki on the runway, but Nikki takes it in stride. John meets with Maria about his tape recording of their conversation when she paid him to break up Luke and Michelle. She tries to act tough, but John threatens to reveal the tape to Luke. He demands $50,000 to keep silent about it and one more thing. With the Face of Gianni model selections made, Michelle and Michael discuss their next step. Michelle needs to call Lexi to tell her their plans, but Michelle dreads contact with Lexi because Lexi keeps wanting to discuss what happened with Luke. Michael tells her there's always two sides to every story, and maybe she ought to hear Lexi out. Outside Michael's studio, Tania picks a fight with Nikki. She then heads back inside and overhears Michael having to plead with Michelle and Lexi to keep her in the show despite her bad attitude. As Harold and Hans slave away on the Face of Gianni dresses, John struts into the workroom. Harold and Hans ask for his help, but John declines, then drops his bombshell: Maria has just promoted him to senior designer. Tania storms into Gianni House and bawls out Lexi for criticizing her for the Face of Gianni campaign. When Lexi talks back, Tania slaps her face and storms out. Harold and Hans express their outrage to Maria about John's promotion, but she tells them they can always quit. Luke invites Michael over to discuss what paintings he should use in his upcoming art show, but all of his current paintings are of Michelle. Lexi goes to Maria to complain about Tania and asks Maria to do something about it, but Maria turns on her and savagely criticizes Lexi for having no spine. William walks in moments later, and when Maria calls for Lexi, he tells her that Lexi just ran away in tears and Maria's doing a good job of making sure she'll have no one on her side. Lexi has fled to the workshop, where Harold and Hans are comforting her. Michelle walks in and Lexi grabs her and begs her to let her explain what happened with Luke. She finally fesses up that Maria is the one who asked her to pursue Luke. She also confesses that Luke was drugged the night they supposedly slept together. Michelle immediately runs to Luke's studio and apologizes to him for doubting him. She tells him that Maria drugged him so that Lexi could seduce him. Maria's lawyer Clive shows up at her office and gives her a pep talk that she'll come up with some way to survive. Luke refuses to believe that his mother would drug him, and asks Michelle to leave him alone.