Katie tries to find out from her sister if she and Bill are being set up. Eric works out that Katie is close to discovering the truth. Brooke admits to her sister that the new line is supposed to be a failure. Ric informs Ridge that they have a problem. Katie is furious with her sister and Brooke asks her not to tell Bill. Donna is convinced that Katie will tell Bill everything. Katie ends up telling Bill everything and he calls a meeting.