This is what happened
Lulu broke her kiss with Logan because she was hearing alarm bells. He said he'd like to get her into bed, but not if she doesn't want to. She recapped her first time, with Dillon, calling it the worst night of her life. She was afraid of repeating her mistake. Logan was a huge believer in birth control, since he was a mistake himself. He praised her courage for having the abortion. He noted there's a big difference between being careful and shutting down. Lulu went to Kelly's and told Georgie nothing happened because she's not sure she wants to sleep with a guy ever again.
After the banker talked to "Alcazar," Jerry gave the phone to Carly, who was stunned to hear his voice. When the banker left to free up the cash, Carly threw a vase at Jerry and accused him of playing games. Jerry assured her Alcazar is dead — the voice belonged to a special ops comrade who mimics people. Next, they went to Alcazar's estate and stole old security tapes, which Jerry planned to use to trump up an Alcazar sighting.
Liz told Lucky and Sam that she thinks her testimony helped Jason. Lucky made her admit that Ric forced her to repeat that she cheated with Jason. In the courtroom, the judge allowed Ric to replay the recording. Outside court, Sonny warned a jumpy Skye that her testimony better help Jason, but Skye threatened to say Jason killed Alcazar. Sonny suggested he's a better "business option" than Ric, who will stab her in the back. Back on the stand, Skye admitted she found no evidence of foul play in the house. She added that Lorenzo often disappeared without explanation — sometimes as long as a month. In fact, she has no reason to believe that he's dead. Skye said Ric hated Sonny and Jason, mentioning the Lily impersonator designed to drive Sonny crazy. Diane asked if Alcazar could have staged the sounds on the tape to frame Jason. Skye said it's entirely possible. Outside court, Liz accosted Sam, and they traded insults. Liz warned Sam to stay away from her house, her children and her husband. Skye conceded to Ric that the killer could have cleaned the crime scene. Ric asked if she hated Alcazar for taking Lila enough to help kill him. She asked if he was accusing her in Alcazar's "death." Ric seized on her use of the word "death." Did she have any evidence that Lorenzo is alive? No. Later, Amelia testified about the thug Jason shot at the studio. Next on the stand was Donald Mancini, Alcazar's gardener, who said he saw Jason outside Alcazar's house, stuffing Lorenzo's dead body into an SUV. At Kelly's, Liz asked Alexis to talk Sam out of pursuing revenge. Sam went back to Lucky's to look for her phone, and they shared a close moment.
Epiphany blasted Kate for hijacking an orderly to run "frivolous" errands for her. Then she critiqued the skinny models and crazy fashions in Kate's magazine. Sonny arrived to take Kate home. Later, he physically carried her to the couch in his study. Max told Sonny that Michael reported that Carly is "helping Uncle Jason" someplace. And Jerry disappeared the same day. Sonny offered to teach Kate how to swim. Morgan arrived with flowers to thank Kate for saving his life. Alexis arrived with papers about Kristina for Sonny to sign. Kate said she never wanted kids. Alexis told Sonny that stepchildren count. Kate bristled and told Sonny she lets her guard down around him so she has to leave town or be swallowed by the "bourgeoisie monster." She said, "Kate Howard cannot exist in your world." "Kate Howard is a sham," Sonny countered, saying she hides behind Kate instead of confronting her feelings. She vowed to sell her house; he accused her of fearing that Connie will reclaim her life. He kissed her, and she fled, horrified.