Plot
It has been several months after the killer known as "Holiday" was apprehended. [N 1] "Holiday" was actually Alberto Falcone, attempting to one-up his father, and prove he is more than capable of handling the family business. Janice Porter has replaced Harvey Dent as Gotham City's District Attorney and despises Batman's methods, although Commissioner Gordon tries to sway her opinion.
Bruce blames himself for letting Harvey go beyond saving and for letting him become a villain himself, serving time in Arkham Asylum, like many of the people Dent put there. Batman becomes even more of a loner, refusing Gordon's assistance, and Catwoman's. During a visit to Dent's cell, there is a large breakout of most of the inmates of Arkham. Alberto is not one of them. Batman insists Sofia Gigante had some hand in the breakout, but she assures him she does not, as since their last visit she now uses a wheelchair and has a brace on her head.
Janice Porter allows the release of Alberto to house arrest in his brother Mario's custody at their father's old estate. Shortly after his release, Clancy O'Hara's body is found hanged from the Gotham city bridge, his old patrol. Taped to his chest is a newspaper clipping, headlined "Holiday goes free", with a hangman riddle written on it.
Batman interrogates the Riddler, the only man whom Holiday did not kill, but he assures Batman that he has not the faintest idea as to why Holiday did not kill him. In the Falcone estate, Alberto begins to hear his father's voice, telling him to continue his work as the Holiday killer. Soon after the Riddler meets with Batman, saying that the killer assumes that another person is playing their twisted game, the corrupt ex-commissioner Gillian B. Loeb is found hanged from his stairs in his mansion, another riddle on his chest.
Later, another corrupt officer, Detective Flass is found hanged outside the strip club where he worked as a bouncer. Batman believes that Alberto is the newly dubbed "Hangman" killer, or knows who the person is. He interrogates him, but learns nothing and leaves to search for Harvey Dent.
Entering the sewers, Batman fights Solomon Grundy, and he leads Batman to Harvey's new office. Searching his office, there is an explosion and Batman loses Two-Face underground. In Gordon's office, he is talking and trying to persuade Janice to accept Batman, and she agrees, as long as he follows the law.
Another hanging, Sgt. Pratt with another note on his chest. All of the notes have come from Harvey's old desk as the D.A.; all of the evidence suggests that he is the killer.
During the "Hangman" killings, Bruce is also struggling with his relationship with Selina Kyle, so much so that she eventually leaves Gotham and only left him a note.
Janice Porter has been shown meeting a mysterious man several times throughout the investigation, and it is eventually revealed to be Harvey. Another hanging is found, this time in front of Harvey's old house. Officer Merkel is found with another note on his chest. Harvey, now completely taken over by his darker side, conducts his own investigation throughout the escaped criminals, questioning all of them as to the identity of the Hangman killer. Gordon is almost hanged on the roof of the precinct, but is saved by Two-Face who assures the men that he is not the Hangman killer.
Multiple attacks on organized crime by the Joker are perpetrated, and he eventually assaults the Falcone estate, attacking the members of the family before being apprehended by Batman. Another hanging is found inside the garage of the precinct. Batman adopts a young Dick Grayson as his family is killed during a mob sabotage, and he begins his training to be his partner.
During a police raid on the underground hideout of Two-Face, Batman assists Gordon and they eventually catch him. During all of which, Alberto is still hearing his father's voice telling him to continue his work. He is eventually pushed to the point of almost committing the murder of his sister, but resists the temptation. Two-Face is put on trial, but escapes when the other criminals assault the court.
Another hanging of a police officer, and Two-Face is still the prime suspect. Janice is kidnapped by the Joker and the Scarecrow, and when she argues with Two-Face, he kills her. They dump the body into Alberto Falcone's bed, to convince him he killed her. Finally, he breaks the facade and it is revealed that the Calendar Man had secretly placed microphones all over the house and manipulated him.
Batman investigates Mario Falcone's penthouse, and is almost hanged but frees himself due to metal braces to protect his neck, and attacks Catwoman. She reveals that she investigated Sofia Gigante, and that she could find no record of her visiting an orthopedist, despite the fact that she uses a wheelchair. After escaping the estate, Sofia and Alberto meet inside the family mausoleum; she smothers him, telling him he is not a real Falcone.
At the Batcave, Dick correctly translates the clues left behind that they refer to protecting the Falcone crime family, and Batman scrambles to leave. At his hideout, Two-Face is attacked when several explosions rip through his lair; the criminals attempt to escape when Two-Face is attacked. Finally, the Hangman killer is revealed as Sofia Gigante. She had killed everyone who had helped Harvey to become the District Attorney and further his career, and left clues to make it look like it was him all along. Her final ploy was to pretend to be paraplegic, leaving her as the last suspect. During the ensuing fight, Sofia is shot by Two-Face and Batman gives chase.
Dick intervenes, now wearing a uniform as "Robin", and he assists Batman in the recapture of the criminals. Joker shoots Two-Face, and he falls presumably to his death. Mario Falcone, now a broken man, torches his family's estate, leaving his family destroyed. Selina Kyle arrives at Carmine's grave, and confesses the truth that she knows that he was her father, but cannot prove it yet. Two-Face is revealed to have Carmine Falcone's body, and it was frozen, presumably, by Mr. Freeze. Dick takes an oath with Batman in the Batcave to help him in his crusade against crime.
