Floyd the barber lies to his long distance girlfriend about his situation and how much money he has. When she writes him saying she will visit, he is torn with guilt and decides to uphold his lie and pose as a rich man.
With Richard about to expose Gavin for his plagerized Tethics Code of Conduct, Gavin makes a public speech about how he lacked ethical judgement about his time at Hooli and that he wants to open an investigation into his time there. However, this is actually a ploy to block Pied Piper and Hooli's merger temporarily to make Richard's life a lot more difficult.
AT&T chooses to go with YaoNet instead of Pied Piper, but Richard hasn't told his employees yet. Dinesh and Gilfoyle overhear the deal is gone. They decide not to tell the rest of the employees to keep up morale and productivity.
Pied Piper is missing its mark on daily active users. Richard contemplates shutting down the company but the next day Pied Piper gains over 7,000 new users. Everyone celebrates but Jared is actually secretly buying users from a click farm.
Dinesh and Gilfoyle find out that Richard didn't tell Bighead that they were moving Anton the server to Stanford and they quit. Richard blows up at Dinesh and Gilfoyle calling them hypocrites for now deciding not to help him move Anton into Stanford as they had previously told Richard to lie to better help the company.