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Plot
As 1999 nears its end, Los Angeles has become a dangerous war zone. A Chinese restaurant is robbed by a group of criminals, with one recording the event with a SQUID (Superconducting QUantum Interference Device), an illegal electronic device that records memories and physical sensations directly from the wearer's cerebral cortex onto a MiniDisc-like storage device.
Lenny Nero, a former LAPD officer turned black marketeer of SQUID recordings, buys the robbery clip from his main supplier Tick. Elsewhere, Iris, a prostitute and former friend of Faith Justin (Lenny's ex-girlfriend), is chased by LAPD officers Burton Steckler and Dwayne Engelman. Iris escapes on a subway car, but Engelman pulls off her wig, revealing a SQUID recorder headset.
Lenny pines for Faith and relies on emotional support from his two best friends - Max Peltier, a private investigator, and Lornette "Mace" Mason, a bodyguard and limousine driver. Mace has unrequited feelings for Lenny from when he was still a cop and acted as a father figure for her son after her boyfriend was arrested on drug charges, but disapproves of his SQUID-dealing business. While Lenny and Max are drinking at a bar, Iris drops a SQUID disc through the sunroof of Lenny's car before it is towed away. Mace picks Lenny up and takes him to a nightclub where Faith is going to sing. There, Lenny receives a SQUID disc from an anonymous contact and unsuccessfully tries to get Faith away from her new boyfriend, Philo Gant. Gant is a music industry mogul who managed the recently murdered rapper Jeriko One.
While in the car with Mace, Lenny plays the disc the contact gave him and watches as Iris is brutally raped and murdered by an attacker at the Sunset Regent hotel. As they approach the hotel, Iris's body is taken out on a stretcher. The next day, they take the disc to Tick, who cannot identify the source of the recording, but recalls that Iris was looking for Lenny. Deducing Iris may have left something in Lenny's car, Mace and Lenny go to the impound and find Iris's disc. Steckler and Engelman appear and demand the disc at gunpoint, but Lenny and Mace escape in her bullet-resistant car before being forced to stop at a dock. Steckler pours gasoline on the car and sets it on fire, but Mace drives it into the harbor, extinguishing the flames. When they reach the surface, the cops have left.
Mace takes Lenny to her brother's house and they watch Iris's disc, showing Iris was with Jeriko One when Steckler and Engelman pulled him over and murdered him, because his anti-police lyrics and activism incited protests against the LAPD. The two return to Tick, who Max explains has been rendered brain-dead from forceful exposure to amplified SQUID signals. Lenny fears Iris's attacker covered his tracks by "killing" Tick and will come after Faith. Back at the nightclub, Lenny and Mace confront Faith, who reveals that Philo is afraid Iris's disc would reveal that he kept his artists under surveillance. Lenny and Mace disagree over whether to trade the disc to Philo for Faith's freedom or release it publicly, which could incite a citywide riot. As midnight approaches, Lenny and Mace sneak into a private party that Philo is hosting at the Westin Bonaventure Hotel for the city's wealthy elite. Lenny has a change of heart and tells Mace to give the disc to deputy police commissioner Palmer Strickland.
In Philo's penthouse suite, Lenny finds Philo brain-dead on the floor and another disc, revealing Faith's affair with Max, who "fried" Philo's brain with an amplified recording of them feigning rape. Pointing a gun at Lenny, Max explains that Philo hired him to kill Iris, but when Philo wanted Faith dead as part of the coverup, he decided to frame Lenny for the murders. Lenny and Max struggle in a fight, Faith intervenes and pulls off Max's wig with a SQUID inside - assuring a confession - and Max stabs Lenny in the back. The fight culminates with Lenny on the balcony with Max hanging over; Lenny pulls the knife from his back to cut his necktie and drop Max to his death. Meanwhile, on the crowded streets, Mace subdues Steckler and Engelman with baton and taser, but other officers take down Mace. The crowd moves in, in support of Mace, and a major riot seems inevitable. Strickland, who has viewed Iris's disc, arrives and orders Mace's release and the arrest of Steckler and Engelman for murder. Engelman commits suicide; Steckler threatens Mace, but the officers gun him down. Faith is taken away in a police car. Lenny finds Mace, and the two share a hug before she gets in Strickland's car. Then Lenny drags her out and they share a kiss as the crowd celebrates the turn of the new millennium.
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