On Adams College, a new generation of nerds now rules the campus, reshaping the social order and challenging long-standing hierarchies. The Alpha Betas, once the loudest force on campus, come to respect the nerds’ prominence as power shifts in unexpected ways. Everything changes when Orrin Price, a successful but reprehensible businessman, joins the Adams College Board of Regents, signaling a new era of influence and a fresh set of rivalries. A new generation of jocks also arrives, including Orrin’s nerd-hating son, injecting athletic bravado into the boardroom battles. Former Alpha Beta Stan Gable, now a motorcycle police officer, is installed as the new dean of students by Orrin Price, a move that promises to upend the old balance of power and test old loyalties.
[Lewis Skolnick], who chairs Adams’ Computer Science Department, has been distancing himself from his nerd past by growing a ponytail and asking people to call him "Lew" rather than Lewis. > "Lew" rather than Lewis. His nephew Harold Skolnick, now a student at Adams, is surprised by his uncle’s behavior, reminding him that in his day Lewis was the "George Washington of nerds." Betty Skolnick, now married to Lewis and also an art professor at Adams College, tries to remind him that she fell in love with him because he had the courage to be himself. But Lewis is more interested in befriending the new dean, not noticing that Stan Gable hopes to break up his marriage and win back Betty. Meanwhile, Harold Skolnick and his friend pledge Lambda Lambda Lambda, whose group now includes an obese kilt-wearing English inductee and a Korean Elvis impersonator, who emphasizes that he is South Korean when asked about his dixie accent. Harold successfully makes it through the Tri-Lamb’s "rush week." However, a barbecue celebrating the new members is disrupted by Alpha Betas in ski masks. More harassment comes, and the Tri-Lambs look for legal help, but have a hard time finding a suitable alumni due to most of them getting technical jobs. However, one alumnus is an attorney, Dudley "Booger" Dawson. Booger warns Lewis about the harassment, but leaves in disgust when he sees Betty and Lewis socializing with Stan, calling Lewis a "self hater."
Lewis reaches out to Stan to help defend the Tri-Lambs, but Stan says no. Lewis angrily reminds Stan that he was forgiving of their rocky past and even defended him when others were telling him Stan was worthless. But Stan says that he is not Lewis’ friend and that Lewis will always be a nerd. This betrayal spurs Lewis to once again embrace his nerd self. He arranges bail for the arrested Tri-Lambs by putting up his house as collateral. He then calls upon all nerds, those on campus and in the city, who are sympathetic to their cause to participate in a massive nerd strike. Many of the city’s basic utilities and services become crippled. To end the strike, Price frames Lewis for embezzling college funds and harvesting marijuana in the basement of the Tri-Lamb house. Stan thinks Orrin Price has gone too far, yet does not object to Price’s actions. The strike is called off after Lewis is arrested. Betty confronts Stan about getting Lewis released, even offering herself to sleep with him. Stan becomes deeply ashamed and declines her offer.
Many of Lewis’ old Tri-Lamb friends as well as his father return to support him. At the trial, the judge denies all of Booger’s arguments and says that Lewis is guilty. Stan has a change of heart and testifies against Price, admitting that he has proof that Price framed Lewis for the theft and also planted the marijuana. Stan also admits that he is a nerd and has always wanted to read books and learn as much as possible, but his family always discouraged it. Price is arrested, and the charges against Lewis are dismissed. The Tri-Lambs are cleared, and the Alpha Betas are defeated once again, this time losing their Adams fraternity charter. Stan feels it best that he resign as dean of students, but Lewis convinces Stan to stay on. The nerds accept Stan as one of their own, once again guaranteeing nerd freedom at Adams College.
