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Alicia hit Peter with the following words at the end of tonight's episode: It's over. What led to this exchange?
Peter tried to make it look like he's changed, most notably by embracing religion. While Alicia was hesitant to accept and understand that, she clearly was hoping it was a sign of things to come. But she then caught her husband - in the stairway of the church! - confronting an old business acquaintance. Viewers saw this guy try to shake Peter down for an admission of some shady dealings, only to be exposed by Peter as wearing a wire.
Alicia saw the guy storm out of church, suspects Peter of doing the same old seedy business, and responded that night by making a dinner date with Will. When Peter showed jealousy and wanted to talk, that's when Alicia uttered the two words mentioned above. She then left the apartment and Peter chased after her, causing the alarm on his ankle monitor to go off.
The case of the week, meanwhile, centered around a bomb that was detonated at a newspaper headquarters. As usual, the details weren't too important, but it centered on a cartoon of Mohammed that Muslims objected to. It also pitted Alicia against Stern, her old boss. But she used the information she has on his illness against him in court.
Cary also came through by telling Will about an offer Stern's firm made to him. He turned on a lover in the process, as he tried to position himself for the junior associate position.
Finally, Will and Diane had to match another offer Stern made to Julius, as the economic situation of this firm is becoming a major issue. How will that play out when it comes down to choosing Alicia or Cary? We'll soon see.