A guilt-ridden Naomi is forced to testify against Mr. Cannon in court during her sexual harassment hearing when she feels she losing control of her ability to lie about it all. Meanwhile, Annie tries to move on and forget her relationship with Jasper by hanging out more with Silver when they decide to purchase a '65 Ford Coupe for themselves, but when she and Silver drive past the scene of her hit-and-run, the guilt comes rushing back to haunt her. Dixon and Ivy continue to maintain their fake relationship and decide to take it to the next level. While Navid becomes uncomfortable about Adrianna's new romance with a girl, both Gia and Lila grow uncomfortable with Navid trying to start a friendship with Adrianna which leads to Gia cheating on Adrianna with her ex-lover Alexa. Elsewhere, Ryan continues dating Ivy's troubled mother, Laurel, who pulls him into her dangerous lifestyle of pot-smoking and free-love, while at the same time, Laurel wants to sign Adrianna to a recording contract, but wants her to leave her band first. Also, Liam receives a surprise visit from his estranged father, Finn, who was recently released from prison and has apparently been trying to go straight by opening up a local bait and tackle shop.

The gang is preparing for the SAT's when Silver disagrees with Teddy's decision to skip college to focus on his tennis career and things grow even more tense when she meets his movie star father, Spence. As a result of falsely accusing her faculty adviser of sexual harassment, Naomi is now required to complete community service and publicly apologizes to her peers for the trouble she has caused. Meanwhile, Liam and his father, Finn, reconnect and attempt to rebuild their relationship as Liam moves in with him. Navid and Dixon host an underground gambling party that results in Dixon quickly becoming out of control with betting and he ends up owing Teddy's father's bookmaker, Mark, a lot of money. Debbie reveals to Harry that her yoga instructor made a pass at her, which forces the two to finally discuss their recent problems. Annie, aware of her parents marital troubles, turns to Liam for support. At the end, Naomi gets an unpleasant surprise when her psychotic and revenge-seeking sister, Jen, returns to Beverly Hills, with her French husband in tow, where they announce that they are the new owners of the Beverly Hills Beach Club.

Teddy invites Silver over for dinner at his house so she can meet his father, but things doesn't go as well as planned when Spence openly disapproves of her. Meanwhile, Naomi finds herself at odds again with her sister Jen when she begins giving Naomi a very hard time as she continues her community service work at the Beach Club. Navid realizes he still has feelings for Adrianna after she asks for his help to write a song as she prepares a solo singing career. Also, Annie learns of her parents problems marital troubles and thinks that their marriage is doomed.