Episode 12 comes back with a bang!!! Serena and Lily still aren't on speaking terms due to Lily's past scandal of falsely accusing Serena's old high school teacher from boarding school of having relations with her when she was still a minor and sending him to prison by forging her signature on the affadavit.
Meanwhile, Lily puts Bass industries up for sale with the hopes of it being a good move to getting the company back in shape before any possible destruction. The hotel was to be sold within the next 24 hours. So Serena and Chuck team up to put a stop to Lily and her selfish actions by threatening to give the affadavit to a journalist who would be at the event the family were attending.
Lily tries to convince Serena and Chuck that the decision to sell Bass Industries was the best possible decision for the company and what's left of it because she knew that the buyer would keep the company up and in good shape. However, due to all the arguing and bickering going on within the family, Russel Thorpe, an old collegue of Chuck's dad who wasn't a good collegue, took the family's public arguments to his advantage and was successful enough to make the orginal buyer of Bass Industries back out of the deal making the company up for grabs to anyone who wants it.
Dan and Blair seemed to get close over their school's break by not wanting to admit that they have more in common than they'd ever thought.
Serena's old teacher and friend Ben was released from jail by the judge who put him in and on both occasions was compliments of Lily Bass...
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