When King Julien and Skipper are taken from the Central Park Zoo by the Vesuvius Twins and forced to fight each other, the rest of the penguins and the lemurs team up to rescue them.
King Julien wakes up to the smell of gold, and assumes it was the gold fairy's visit that brought him a new mirror. Turns out, shiny golden rectangles had appeared all over the Zoo, and Kowalski calculates the odds they might be targets for a space-lazer, but Marlene stops by for a visit and explains she seen this sort of thing at her old aquarium... rich people pay for the zoos benefits and, in return, get to put "adopt-a-critter" signs on preferred habitats as a symbol of ownership (Skipper calls it a debt of servitude, placed on the animals the zoo-overlords). Phil and Mason reveal the worst part: over 70% of the habitat has been "adopted" by the Vesuvius family! Every animal in the zoo knows that of all the spoiled brats a rich clan could have, the Vesuvius Twins are the worst, thus went into hiding as the dangerous duo went to Alice's office for a proposal... since they practically own the zoo now, they can really do whatever they want to the animals, include take them home. Alice wasn't interested, but when the twins brought in their lawyer team to explain she'd lose her job if she refuses, this zookeeper's convinced, but she makes three conditions: 1. the twins can only bring home total of two animals, 2. the animals have to be the small kind, and 3. the twins have to pay for the damages their lawyers did to her office (especially the ceiling)! Unfortunately, the Vesuvius Twins bring Skipper and King Julien to their home.
King Julien screamed in excitement over the size of the penthouse's TV set, but Skipper warned his fellow prisoners that Vesuvius' can "smell weakness" and have a talent for stealing any animals' dignity if they're not careful. King Julien told Skipper that his dignity can't be stolen because of his royal status, but the twins force them to fight each other over shiny baubles, the sort of thing that, while Skipper only fights for freedom, King Julien just couldn't resist.
It is up to Kowalski, Rico, Private, Maurice and Mort to save Skipper and King Julien from the Vesuvius Twins, and they had planned a well thought out jailbreak from the Vesuvius Family Penthouse, but they had delays... mostly Mort's over enthusiasm to save King Julien. That very lord of the lemurs had been reduced to a pushover, as he ate rotten food for the twin's amusement to get a lemur-sized champbelt, which got him so sick he thrown-up on Skipper, just as the twins notice the other penguins and lemurs on the screen, coming in through the airvents. Those spoiled brats set a trap up for the extra animals, and despite Skipper's warnings, Mort triggers it, and they all end up part of the most dangerous game making Kowalski regret on bringing Mort along with them: The Vesuvius Brothers' Circus of Pain!
King Julien seemed to be their only hope, but dancing like a fool wearing all his "prizes" (plus a golden-diaper-chain-leash!) it seemed they didn't have a prayer, especially since he wouldn't share the wristband with Skipper, who needs it for an exit strategy... that is until Maurice said "Forget it Skipper... I came here to rescue a king... not some kid's fancy little pet!
King Julien wouldn't believe his ears, as a king like himself is a pet to nobody, but when the twins noticed he stopped dancing, and yanked the gold-chain leash demanding he does more, only then did he realized his dignity really was stolen and he's been reduced to a "fur-toy", but he redeems himself by removing the diaper-leash as well as all the sparkly trinkets he foolishly "won" (though he intends to keep the belt). He also fell on the switch, moving the train. Had attained the wristband, Skipper managed to free himself and the others, then they all turn the tables on the Vesuvius brothers' by putting their pretend circus "under new management". Skipper congratulates King Julien for getting his dignity back, and Julien approves Kowalski's newest contraption to take the dignity of the twins, who cry for their mommy... and their lawyers!