Bobbie helped Carly connect with her son and the two women grew closer. Carly then shocked Bobbie when she said that she was really Caroline, the daughter Bobbie had given up for adoption as a teenager. Bobbie was outraged that Carly had kept the truth from her and equally enraged over the fact that Luke had also known the truth about Carly’s true identity.
With Luke’s help, Tammy and Felicia quickly figured out that Felicia had been Moreno’s target and that Moreno had wanted to frame Felicia for murder. Felicia explained everything to Mac and the charges against Alan were dropped.
Elizabeth Webber was raped on the night of the school Valentine’s Day dance. Lucky became a pillar of support for Liz in her time of need. Luke was deeply disturbed by what had happened because it made him face what he had done to Laura 20 years ago. After a violent confrontation, Nikolas shocked Lucky by telling him that Luke had been the man who had raped Laura. Lucky became disgusted by Luke and did not want to have anything to do with him. After Lucky told Liz what his father had done to his mother, the bond between them became stronger. Lucky left home and stayed at Liz’s house before getting a place of his own.
Helena Cassadine returned to Port Charles determined to regain control of her family empire from Stefan. Helena had known all along that Alexis was actually Stefan’s half-sister Natasha and intimidated Alexis into serving as her agent. After Stefan refused to believe that Alexis was Natasha, Alexis realized that she had no choice but to do Helena’s bidding.
One day, Helena gave Lucky doctored photos of Laura that made it look as though Luke had beaten Laura in addition to raping her. The photos renewed Lucky’s anger towards his father and they remained estranged. Helena then arranged to have items from Laura’s time in Greece delivered to Wyndemere which triggered Stefan’s memories of Laura. Stefan used the ring Laura had worn while married to Stavros to propose marriage to Katherine. Stefan then planned a masked ball at Wyndemere to announce their engagement and invited the Port Charles elite.
Alexis finally reached the end of her rope with Helena and conspired with Luke to plot her demise. They had planned to have Helena fall off a parapet at Wyndemere during the ball. Luke loosened the railing of the parapet in order for Alexis to lure Helena to a fatal fall. However, their plans took a tragic turn when Laura came back to town and went to the ball. Laura soon realized that Stefan was trying to make Katherine resemble her and confronted Katherine. Katherine discovered the painting of Laura and the items in the mysterious trunk and accused Stefan of loving Laura. Katherine realized that Stefan was Nikolas’s father and backed onto the parapet and fell to her death.
Soon thereafter, Laura was confronted by Lucky. In a quiet rage, Lucky ripped Laura for marrying Luke, the man who had raped her. Laura defended herself and her marriage to Luke. Laura confronted Luke for not telling her that Lucky had found out about the rape incident from the past. Laura explained why she had forgiven Luke and urged him to put the past behind them. With their love renewed, Luke and Laura decided to face the future together.
Stefan went on trial for Katherine’s murder and told Laura to distance himself from the case as the truth about Nikolas’ paternity could never be made public knowledge. In the end, Laura couldn’t bring herself to just sit back and watch Stefan be convicted of a murder she knew he didn’t commit. After trying to justify her decision to Luke, Laura testified at Stefan’s trial. Laura faced a barrage of questions centering on her feelings for Stefan and Dara tried to imply that Laura and Stefan were having an affair. Back at home, Luke confronted Laura and accused her of being in love with Stefan. Laura denied, but explained to Luke how close she and Stefan had become while she was held prisoner on the Cassadine island. Luke then made the shocking realization that Stefan was Nikolas’s father, not his uncle as the world believed. Luke was devastated and left Laura without a word, taking a piece of the Ice Princess with him before leaving Port Charles for parts unknown.
Laura’s testimony vindicated Stefan, who made it clear that he wanted Laura back in his and Nikolas’s lives. With Stefan off the hook, suspicion fell on Helena Cassadine. At her arraignment, Helena shocked the courtroom when she called a very much alive Katherine to the witness stand. Katherine had never died at all, but had been seriously injured. Helena had been secretly hiding Katherine while she recuperated and made a miraculous recovery thanks to a two-tiered drug treatment pioneered by Helena. Katherine seemed to have an agenda against Stefan, who feared she would remember learning that he was Nikolas’ father. Laura also became suspicious of Katherine and both she and Stefan agreed that Katherine could be dangerous and shouldn’t be trusted.
With Luke still out of town, Laura found herself more and more vulnerable to Stefan. Stefan confessed his love to Laura and they even shared a kiss. Laura tried to convince Stefan that she loved Luke, but still wanted to be a part of Nikolas’ life. Laura insisted that any relationship she had with Stefan would have to revolve around Nikolas. Stefan, however, was confident that he, Laura and Nikolas would be a family one day.
Katherine continued to strengthen her friendship with Nikolas and it was clear she had a hidden agenda of her own. Katherine was also determined to remember all the events on the night she fell from the parapet. Katherine and Nikolas grew closer while working on a charity fundraiser for General Hospital and eventually became lovers. One night, Katherine remembered everything about her fall and realized that Stefan was Nikolas’ father. After overhearing a conversation between Katherine and Helena, Nikolas accused Katherine of using him to get back at Stefan. Katherine defended herself and ended up telling Nikolas the truth about his paternity. Nikolas was crushed and confronted both Stefan and Laura. Nikolas soon reconciled with Stefan and Laura and was genuinely glad that Stefan was his father.
Luke returned to Port Charles and promptly “convinced” Lucky to join him at a remote cabin in the woods. Luke tried to get through to Lucky, who made it clear that he wanted no part of Luke’s feud with Stefan. Lucky left Luke at the cabin, but soon returned, which was a very good thing since Luke had stepped in to a bear trap. Lucky helped a feverish Luke, who was plagued with nightmares of the night he raped Laura. Lucky began to have a change of heart toward Luke and they ended up closer than they had been in months.
Laura found Luke and Lucky at the cabin and noticed Lucky’s new attitude towards Luke. After returning to Port Charles, Luke and Laura finally confronted each other about all the secrets they had been keeping. Laura told Luke that she knew he had played a part in Katherine’s fall and Luke admitted he had been trying to kill Helena. Laura was stunned that Luke seemed to have no remorse whatsoever for his actions. Luke also had questions for Laura about her relationship with Stefan and hinted that he might not keep the secret that Stefan was Nikolas’ father. Luke and Laura were more apart than ever and Luke moved into a room above Ruby’s diner. By the end of the year, Laura found herself growing more and more attracted to Stefan.
Luke shocked Alexis with the truth that Stefan was Nikolas’ father. Alexis then decided to go after her own share of the Cassadine fortune.
Emily was shocked when she received a nude photo of herself in the mail one day with a blackmail note attached. Someone had put Emily’s face on the nude body of another girl and was threatening to put the photo on the internet if Emily didn’t come through with some big bucks. Emily turned to Nikolas for help and they in turn asked Lucky and Liz to help them also. Lucky and Nikolas were unlikely allies, but they both wanted to help Emily and catch her blackmailer. In the process, the friendship between Liz and Emily deepened and Lucky and Nikolas put aside their differences, for the most part. Using Nikolas’ computer, Lucky and Nikolas began their search to expose the person blackmailing Emily.
As it turned out, a photographer named Tom was the person blackmailing Emily. When Liz and Emily realized this, Tom held them at gunpoint and locked then in the darkroom at the photography studio. In the process, Tom also admitted that he had been the person who had raped Liz in the park. Lucky and Nikolas rescued Emily and Liz and Tom was arrested. Tom went on trial for blackmailing Emily, but couldn’t be prosecuted for Liz’s rape. Tom was sent to jail and Liz was finally able to put her rape behind her. Emily’s modeling career was in better shape than ever due to all the publicity she had received.
Liz and Lucky were more in love then ever and agreed to go steady. Lucky and Nikolas had formed a real friendship and accepted each other as brothers. Lucky and Nikolas also agreed to distance themselves from the Spencer/Cassadine feud.