Sonny was surprised at how well Michael responded to Claudia. Just then, Michael called and asked if they both could come to the hospital. When they arrived, Michael asked Sonny if he could live with them. He complained that Carly was smothering him. Claudia said it was fine with her but she's not the decision maker. Sonny was hesitant and said he'd have to speak to Carly about it.

At home, Carly managed to convince Jax that the baby would be okay if they had sex. Later, the pair talked to Morgan about Michael's condition. Then, they headed to the hospital to visit Michael.

At the Spencer house, Lucky was still upset about Ethan being Luke's son. Lulu, however, was more accepting. Lucky couldn't get over Luke betraying their mother. Lucky said Luke was his hero when he was young. Lulu pointed out that nobody's perfect. Elizabeth stopped by and encouraged Lucky to try and make amends with his father. Elizabeth assured Lucky that Luke still loves him.

At The Haunted Star, Holly was apologetic to Luke and Ethan about keeping he truth from them. Holly told Ethan that putting him up for adoption was the best thing she could do for him. A tearful Holly then added that giving him up was the hardest thing she ever had to do. Luke was angry that Holly never mentioned they had a child together. Holly confessed to Ethan that she looked him up to make sure he had a good life. "Why did you do this to us?" Luke wondered. Holly apologized for not considering their feelings sooner. Ethan said he was proud to be Luke's son but Holly made him sick. Ethan stormed out and Holly asked, "What about you, Luke?" Luke replied that he doesn't hate her. Holly admitted she thought she'd be able to whisk Luke away with her and hadn't realized he actually loved Tracy. She asked him once more to run away with her. "You've made me a very tempting offer, Miss Sutton," he smiled. Luke said he didn't want to leave his kids — all three of them. As Luke and Holly shared a farewell kiss, Lucky walked in and saw them and told Holly to take Luke with him.

Jason informed Spinelli that he's convinced Claudia was behind Jerry's car bombing and Michael's shooting. They listened to Fredo's tape proving she hired him to set the bomb. Spinelli was hoping that Claudia would turn out to be innocent, as she had always been kind to him. Jason replied that Claudia is a master manipulator. Spinelli played devil's advocate and stuck up for her but Jason was convinced of her guilt.

Carly, Jax and Morgan ran into Sonny and Claudia at G.H. Sonny asked Carly if they could talk. He told her about Michael's request and said he thought that at this time, it would be for the best. Morgan went to see Michael and brought him his favorite video game. They shared a high-five. In the hall, Carly was not happy with Sonny's suggestion but realized that since Michael's so angry at her, maybe it's for the best. She went into Michael's room and smiled at seeing Michael and Morgan happily playing video games. When Michael mentioned moving in with Sonny, Morgan asked his brother to come home with them.

Ethan ran into Lulu on the docks and asked her if she had room in her life for another brother. He explained that Holly changed her story and appears to be telling the truth. Lulu replied that once you get past the swagger and the attitude, Ethan's a nice guy.

Back at home, Sonny mentioned Michael's request to Jason. When Claudia talked about fixing up Michael's room, Jason pulled out the tape recorder with the incriminating tape.