Craig runs into Lily at The Lakeview and tells her that Carly's business idea was actually his – and she averted disaster by turning Carly down. Lily can't believe what Carly did, especially when Craig says Carly only wanted to work with Lily to cut him off!
At the police station Paul tells Barbara again that he isn't going to fight the charges. Babs begs him to fight but Paul won't consider it. She says she'll fight for him and vows to get Meg; Paul says he'll never forgive her if she interferes!
Dusty arrives at the farm and tells Meg that if she values her safety and Eliza's, she has to testify against Paul at the hearing! Meg doesn't want to do it but Dusty pushes her, reminding her of how dangerous Paul can be. She stands by Paul, saying he won't hurt her again but Dusty keeps pushing her and using Eliza to do it.
At Metro Carly and Henry talk about her designer vodka deal; she wonders if the whole thing was a big mistake. Lily walks in a while later and confronts Carly about the business and Craig. Carly realizes she knows everything and tries to explain but Lily isn't interested in listening. She tells Carly to stop throwing their friendship around to get to her. Carly breaks down and tells Lily everything about the partnership, including the kiss. Lily sides with her. She apologizes for lying and says she knows she overreacted. Lily suggests that Carly likes Craig; she swears she doesn't. Carly promises to make this up to Lily.
Henry runs into Craig at The Lakeview and Craig offers to buy him a drink, saying he just wants company. Henry brings up Carly's business; Craig says he is still in the business but he's not going to work with Carly on it. A beautiful woman, Edie, arrives with some new sketches for the designer label. Henry wonders what is going on. He calls Carly and tells her that Craig is trying to replace her. Carly calls Mr. Seigler, the contact, and asks for a meeting as she walks into The Lakeview. Then, she calls Lily, who says she is ready. Lily calls Craig, using a fake British accent, and says Johnny is ill; he rushes upstairs. Carly pushes Henry into the room with the new designer. He pretends to be Mr. Seigler, using a fake Russian accent. The designer, who is fluent in Russian, starts talking in his 'native' language. Henry cuts her off, saying he prefers English. He pulls her away, telling her they need to visit the farm. Carly then walks in and waits for the real Mr. Seigler. He asks about Craig; Carly says there has been a misunderstanding, annoying Seigler who is tired of all the changes going on in their business plan. Carly calms him down by inviting him to Metro. Seigler asks about Craig but Carly pretends not to know where he is. "He has so little respect for your time," she says and then leaves with Seigler. Craig returns and wonders where everyone has gone. He calls Mr. Seigler's office and is told that Seigler is with Carly. "Nicely played," he says and leaves.
Barbara runs into Josie at the courthouse and tells her that Paul has pleaded guilty. Josie is shocked, especially when Babs says Paul refused to let Barbara even speak to her. Paul is brought in and accuses Barbara of going behind his back. Josie follows him and swears that Barbara had nothing to do with her showing up. Meg and Dusty arrive; Barbara begs them to help Paul. Dusty insists that Paul is a danger to Eliza, breaking Babs' heart. She begs Meg to reconsider. Paul tells the judge he does not want leniency. The judge asks if anyone will speak for Paul. Josie starts talking, telling the judge about Paul's breakdown and the way he cared for her during the kidnapping. Dusty interjects that Paul is responsible for Eliza being in a carjacking but Josie just talks over him. She begs the judge not to send Paul up the river and, instead, to find another way of punishing him. Dusty worries that Josie's ploy may have worked. The judge waits for a while and then says he won't send Paul to prison, which annoys him. He goes into the hall, where Meg is freaking out with Dusty. He sadly says he didn't ask for this and swears he has changed. He believes she is ready to forgive him since she came today; she says she didn't testify against him because she didn't want to be responsible for him. Meg and Dusty leave. Babs thanks the judge and hurries to Paul's side. He repeats that he doesn't want another chance; he says the only thing Eliza will know now is that Meg hates him.
Back at Metro Carly goes over her business plan with Lily and Mr. Seigler. He likes her ideas but says they can't just cut Craig out at this point because of his monetary input. Lily says she'll provide the backing! Carly takes Lily aside and says she doesn't need to do this; Lily says it's a good idea and she wants to help Carly get rid of Craig! Seigler asks for their decision as Craig walks in and takes over. He tells Seigler that Carly is playing him. Then, he tells Seigler that the idea is his and Carly has no backing. Then he suggests that anyone Carly might get funding from would be a mistake. Seigler stands by Carly and tells Craig to find a way to work with her or get out of the deal altogether. He leaves. Lily leaves, too. Carly asks Craig if he can handle working for her; he says he can. They set up a meeting for the following day and he leaves.
At the farm Dusty tries to comfort Meg. She is tired of his help and goes upstairs. Josie arrives. She says she needs to talk to Meg about the hearing but Dusty won't let her in and reminds her that Paul is a horrible potential father. She stands by Paul, asking why Dusty is so mean to him. She says he needs to get a grip and stop coming to the rescue of random women and throwing away the women who don't need him. He slams the door in her face. Meg comes back downstairs and has heard everything Josie said. She tells Dusty she can handle all of this and he says again that he'll protect her. "What if that isn't what I want?" she asks.
Barbara follows Paul back to Fairwinds, trying to get through to him. Paul rages that she is only making things worse. Josie walks in and Babs leaves. He asks angrily why she spoke up at the hearing.
Next on As The World Turns:
Margo tells Katie to be honest with Brad.
Paul kisses Josie.
Dusty swears he'll stand by Meg but she isn't sure she wants that.
Brad finds Katie's empty diaphragm case.
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