At the start of the new school year, Wheels's parents forbid him to hang around Joey, as they feel he is a bad influence. Spike returns to school, having had a baby girl during the summer. She ignores Shane, who says he wants to see the baby. Lucy meets an older guy, Paul, who she begins dating. Yick finds out that Arthur's mother won over a million dollars in a lottery over the summer. While out at Joey's place, Wheels is startled to come home and find out that both his parents were killed by a drunk driver.

At the start of the new school year, Wheels's parents forbid him to hang around Joey, as they feel he is a bad influence. Spike returns to school, having had a baby girl during the summer. She ignores Shane, who says he wants to see the baby. Lucy meets an older guy, Paul, who she begins dating. Yick finds out that Arthur's mother won over a million dollars in a lottery over the summer. While out at Joey's place, Wheels is startled to come home and find out that both his parents were killed by a drunk driver.

Lucy devotes most of her time to boyfriend, Paul, and neglects her friends. When her parents go out-of-town for the weekend, Lucy decides to invite her friends to a sleepover. After she has already invited them, Paul convinces her to have a party instead. He tells her not to invite her friends, as it should be kept to high-school students only. At the party, Paul tries to persuade Lucy to have sex with him. After she refuses, he leaves. At school, Lucy's friends are upset with her for not inviting them to the party. L.D. then informs Lucy that Paul told everyone he had sex with her at the party.

Arthur and Yick exchange gifts for Christmas. When Yick assumes that Arthur spent more money on his gift, they get into an arguement. The two friends remember all that they have been through together, and become friends again.

Caitlin has a big crush on Joey and agrees to work with him on a school project. The more time they spend together, the more Caitlin thinks he returns her affection. Caitlin mistakenly thinks Joey has invited her to the dance with him. When she arrives, she is crushed to find out that he is there with Liz.

Snake is excited when his older brother comes to visit for a couple of days. He is later shocked when his brother announces that he is gay. Snake doesn't know how to deal with his brother's revelation. As he tries to come to terms with this news, Snake's brother announces that their parents have kicked him out of the house after he tells them his news.

When Liz tells Caitlin about her interest in animal testing, she tries to convince her to write an article for the school paper. Liz and Caitlin work together in order to let the students know about this topic. When Kathleen informs Caitlin that animal testing is necessary in some cases, Caitlin does some research and learns that Kathleen is right.

Erica has a crush on Clutch, Paul's friend. She finds the nerve to ask him to go bowling with her and her friends and he says yes. As Erica has to attend a dentist's appointment during the date, her twin, Heather fills in until she gets back. At the end of the date, Erica is disappointed when Heather tells her that Clutch actually likes Lucy.

While working on a science fair project together, Melanie is shocked to read in Kathleen's diary about her diet. It appears that Kathleen is anorexic, which causes her to faint during the science fair. Kathleen is furious with Melanie when she tells Ms. Avery. Ms. Avery insists that Kathleen talk to the school nutrionist.

Snake asks Melanie to go to rock concert with him. When she can't find the money she needs to buy a concert ticket, she steals the money from her mother's purse, with the intent to pay her back. When a babysitting job falls through, Melanie confesses that she stole the money. Her mother grounds her, and wont allow her to go to the concert. BLT bets Joey that he can't find a date for Friday night. After numerous attempts, he finally asks Caitlin, who agrees. She later finds out that Joey asked her out on a bet and is furious with him. Joey convinces Caitlin that the money he won wasn't the reason he asked her by ripping up the twenty dollar bill.

Tired of living with his grandparents, Wheels decides to track down his birth father. Joey and Snake attend a concert, where Luke and Shane take acid. Wheels tells Joey and Snake that he is running away to find his father, and swears them to secrecy.

Wheels locates his father at a hotel and surprises him with his arrival. Wheels's grandmother asks Joey where her grandson is. Joey relunctanly tells her and she goes to the hotel to take him home. Wheels tells her he wants to stay with his father. When Wheels's father tells him that he can't stay, he returns home with his grandmother. The police inform Luke that they found Shane. He had jumped from a bridge and is now in a coma.

BLT invites Michelle to the graduation dance and she accepts. She introduces him to her parents, who then forbid her to go out with him. They tell her she is too young to date, but she wonders if they dont want her to date him because he is black. When she questions her mother about this, her mother says they are just looking out for her. Michelle decides to go to the dance with BLT anyway.

Lucy has a party while her parents are out-of-town. Joey, Snake and Wheels get Clutch to buy a case of beer for them. They are stopped by the police when they decide to have a drink on their way to Lucy's. Shane comes out of his coma at the hospital. When Lucy's parents call from the airport because their flight is cancelled, everyone cleans up and leaves. Before her parents arrive, Clutch shows up, drunk. Lucy hurries him out before her parents show up and later breaks up with him because of his drinking.

At the end of the school year, Joey asks Caitlin to the graduation dance. Ms. Avery informs Spike that her grades were poor and encourages her to make them up in correspondence courses. Faulty wiring causes the fire alarm to go off at the dance as the students stand outside and watch their school burn down.