While at the gym, Karen witnesses an awkward encounter between Cane and Lily. After Cane leaves, Karen questions Lily (Christel Khalil).

Lily replies that they are just friends, which she is clearly not thrilled about.

Neil (Kristoff St. John) invites Karen to spend Christmas with him and his kids. However, Karen is weary and says she would like to have Lily and Devon’s blessing first. At the coffeehouse, Devon is asking Lily about Cane when Neil approaches. He asks them if he can invite Karen.

At Kevin’s apartment, Daniel finds Amber setting up Christmas decorations and putting away presents. Kevin wonders where she got the money to pay for them. Amber says it’s from her pre-CD release sales.

Daniel asks to see Amber’s website for her CD. Daniel notices that her sales don’t seem to match all the money Amber has been spending. Later, Daniel invites her to spend Christmas with his family.

At the coffeehouse, Amber (Adrienne Frantz) admits to Cane (Daniel Goddard) she bought him something for Christmas, but Cane refuses to accept it. Nikki asks Kay to join her in her lawsuit against Victor. Kay agrees to consider it, but will need to talk to Victor first.

David shows Nikki (Melody Thomas Scott) the lawsuit papers her lawyers drew up. After seeing the papers, Nikki starts to wonder if she is doing the right thing. Victor confides in Neil that Nikki is suing him.

Kay visits Victor (Eric Braeden) at the ranch to try to dissuade him from calling in the loan. When Victor refuses, Kay tries to show him that this is not about business. Later, Kay agrees to join Nikki’s lawsuit.