At yet another formal ball, André takes the earrings from Louise, quietly takes Donati aside, and confronts him about them, revealing their true history. He then gives them to Donati instructing him to sell them back to the jeweler, so that he may buy them back a third time to give yet again to Louise. Before departing, Donati informs Louise he can no longer see her and expresses his pain at learning of her lies. Louise falls into a deep depression. André presents her with the earrings he has bought back and informs her that her unhappiness is her own fault and that she must give the earrings away to his niece who has just given birth. Louise tearfully agrees. The niece is soon forced to sell the earrings yet again to Rémy to pay off her own husband's debts, and Rémy offers to sell them back to André for a fourth time, but he now angrily refuses. Louise goes to the jeweler herself and buys the earrings back with money from sales of her other jewelry and furs. She informs André of what she has done. In his anguish at having lost her love – or perhaps never having had it – André goes to the gentleman's club where he confronts Donati on the pretext of a slight and challenges him to a duel with pistols.