Desperate to save her Mythic company from bankruptcy, Kate went to Stefano and asked him for money, sleeping with him in the process. She revealed her dirty deed to a hospitalized Roman and displayed a more vulnerable side to her ex-husband. Stefano soon asked her to retrieve the leather folio from Andre. The valuable folio contained the terms to ending the lifelong DiMera/Brady feud. Kate reluctantly agreed to Stefano's request, knowing that she owed him. Lucas, however, insisted on he and Sami going in her place.
In September of 2007, Kate's life took a frightening turn when crazed madman Andre DiMera tampered with the elevator in her penthouse building. Fearing for his mother's life, Lucas arranged it so that Kate could stay with Roman for protection. Kate was terrified when Andre found her alone at the Brady Pub. He forced her at knifepoint to call Roman and summon him to the pub. Roman was able to rescue Kate, who was bound, gagged, and about to be hung by a rope. Unfortunately, Andre knocked Roman out and ended up burying the good cop alive. Roman was eventually set free and rescued.
Kate was delighted when Stefano revealed that the terms for ending the DiMera/Brady vendetta called for Sami to marry EJ. She kissed him, promising to give him further "payment" only when she saw the divorce decree for Sami and Lucas. Lucas walked in on their compromising position and accused his mother of being in cahoots with Stefano to get Sami to divorce him. Kate swore up and down that she had nothing to do with the terms of ending the vendetta. She was devastated when Lucas declared that she was no longer a part of his life and no longer his mother. Lucas broke Kate's heart when he even went so far as to legally change his last name from Roberts to Horton.
Kate was devastated over the death of her friend John Black in October of 2007. She suspected EJ was behind it and threatened to kill him if she ever found out that he had anything to do with it. EJ pressured Kate into making a deal with him: He would help get Lucas back into her life if she convinced Lucas to divorce Sami. Deciding she had nothing left to lose, Kate reluctantly agreed to help him. EJ shot a round of bullets into Kate's car so that Lucas would think she's been targeted by an assassin. A concerned Lucas rushed to his mother's side after the staged incident and gave her a gun for protection. He agreed to rush to Santo Domingo and divorce Sami, fearing that his mother was targeted by Stefano. Kate threatened to shoot EJ if Lucas ever found out the truth.
Shortly afterwards, Lucas found out from Stefano and EJ that the attack was staged just so he would agree to divorce Sami. A disgusted Lucas once again declared that she was no longer a part of his life or that of the twins. Kate angrily showed up at the DiMera mansion and waved a gun in Stefano and EJ's face for spilling the beans to Lucas. EJ arrived at the church shortly after this confrontation and was shot. Kate was one of the suspects, since she threatened EJ with a gun. She met with Philip and asked him to get rid of her gun for her, confessing that she wanted to shoot EJ, but the gun went off accidentally at the church that horrific night. Kate eventually confessed to Roman that he gave her gun to Philip. Unbeknownst to Kate, Philip arranged it so that Shawn would find Kate's gun in the alley behind the Brady Pub. Roman was forced to arrest Kate for attempted murder. However, Kate discovered that Roman was covering for Marlena, who was also a suspect in EJ's shooting. Kate confronted Roman and Marlena over the cover-up. Philip used his power and resources to get his mom off the hook.
In order to help Lucas win back Sami, Kate convinced him to help her tamper with Steve and Kayla's brakes on their car to make it look as though the vendetta was still on. Lucas changed his mind at the last minute and blasted his mom for tampering with the brakes. The police concluded that the job was done by an amateur rather than Stefano. Shortly afterwards, Lucas confessed to his mom that he shot EJ. Kate tried to convince Lucas to leave the country and tried to help him cover up the evidence, but Lucas was arrested and confessed to shooting EJ. Kate and Philip tried to convince him to plead not guilty by reason of temporary insanity, but Lucas refused.
After Lucas was sent away to prison, Kate focused her time on helping her granddaughter Chelsea, who was being threatened by Crawford Decker for her part in his son Ford's death. She went to Victor for help, and he used his power and connections to help get Chelsea off the hook. After the fateful plane crash aboard John Black's private jet in February 2008 which took the life of Grandpa Shawn Brady, Kate seemed to grow closer to Victor. Soon afterwards, everyone discovered that Bo Brady was gravely ill and in need of a donor for an experimental pancreatic transplant procedure. Kate found Chelsea drowing her sorrows at the Cheatin' Heart, fearing that her dad would die. Kate tried to console her and later found her passed out drunk on a park bench. She worried about her granddaughter, as Chelsea was soon revealed to be a donor match for Bo. The transplant surgery was a success, but Kate worried for Chelsea again and stayed by her side in the hospital when she collapsed and fell ill soon afterwards. During this time, Kate noticed Chelsea's crush on the new doctor, Daniel Jonas
Kate has since made a fresh start in the business world and started afresh with her new company, signing up with Tony DiMera and his advertising agency to promote her new product line. She soon will prepare to shoot her first commercial for "Kate's Hearth and Home." Will Kate be able to have it all once again personally and professionally? Stay tuned!
