 The Christmas holidays begin badly for everyone when a Santa-suited Peter, Michael, Kyle, Ryan and Louis Vicontti are arrested after being mistaken for a group of Santa-dressed bank robbers. At the same time, Amanda hires the band Hanson to play at the Upstairs Jazz Club s fund raiser for ailing children. Meanwhile, an uptight, annoying judge sentences the quarreling Michael and Jane to be with each other for the holidays. Ryan and Megan renew their relationship beginning with a weekend long bed-in together. Also, Eve turns to Kyle for help when her blackmailer threatens to tell Peter about her prison past. But Lexi finds out a connection between the man and Eve in which she makes a fuss about it, but no one seems to care.