After landing the city editor job at the Los Angeles Tribune, Lou Grant's first major story is a sex scandal concerning the LAPD and underage girls. However, in order to get it published he must deal with a reporter that is reluctant to bring down the police and Mrs. Pynchon who has a difference of opinion with him.

A gunman, upset with a story about his brother who was wrongfully shot by a store-owner during a robbery, holds the newspaper staff hostage demanding a new story.

When Lou gets a tip from a friend who claims to know the whereabouts of a missing millionaire, members of the staff initially have doubts about following it and dismiss it as a hoax. The man begins to gain credibility when he is able to retrieve information that only the missing man would know.