Because the school board needs to cut costs, Sexual Harassment Panda is fired. He cannot get a new job as a panda mascot, and refuses to change his costume due to an apparently genuine belief that he's a panda. Thus, he goes to the Island of Misfit Mascots Commune, for mascots whose messages simply make no sense (one mascot kills Kenny by accident). Many mascots there also seem to believe they are the animals they portray. The boys, however, seeing the negative results of the lawsuits on their school, track Sexual Harassment Panda down and convince him to return to town with a new message. Meanwhile, Gerald is litigating the biggest sexual harassment lawsuit ever, "Everyone v. Everyone," where he represents "everyone" who hires him to take on everyone else (flagrantly disregarding conflict of interest in the process).