This is the first of a series of three films that were an attempt to duplicate the Thin Man formula. Melvyn Douglas is a dealer in rare books, who is adept at seeking out forgeries. Florence Rice is his wife and secretary. Douglas intends to hire Shepperd Strudwick (what a great name!), who is a reformed ex-confict. George Zucco, the father of his sweetheart, will not hire him. We learn that Zucco framed Strudwick and send him to prison, and is threatening to do it again. George Calhern is a book forger who is using Zucco as a fence. Dwight Frye is the workman who makes the forged book.
Strudwick's fiance, Mary Howard, comes to Douglas to tell him that Strudwick has disappeared. They tell her they will hire him, but that night the the police visit to tell him that Zucco was killed and that they suspect Strudwick. Donald Douglas is the officer leading the investigation, and Claire Dodd was Zucco's secretary. Melvyn plays up to Dodd and tells her there is some money it for them if she will work with him. They meet for lunch, and Rice comes in to give him a threatening note pushed under their door. In the meantime, Calhern and Frye have had a falling out. Douglas meets Strudwick on the street, and he tells him that he did not kill Zucco, but that he found him dead in his office. Later that evening Douglas goes to Dodd's apartment. He pumps her for information that would clear Shepperd. She tells him of a secret compartment filled with the books that Strudwick supposedly stole.
Strudwick tells his lawyer, Douglas Dumbrille, that Douglas was the one who gave him the money get away from the police. Dumbrille arranges for Douglas to have the run of the store to check any details that might help Strudwick. Calhern tells Frye that Sloane is saying he killed Zucco, so they shoot at Douglas on the street, and later Calhern kills Frye. Calhern tries to get from Dodd a letter that incriminates him for murder. (During the shooting, Douglas was wounded in the posterior and has to use an inflated doughnut.) Calhern hires a man to kill Douglas, and Douglas is still working with Dodd to get the information he needs. When they reach her apartment, Calhern is there to get the letter. Douglas finds a picture linking Calhern and Dodd.
Douglas swears out a warrant for Calhern's arrest for taking a shot at him, but after he searches his apartment, he cannot find any evidence for a real charge. The police tell Douglas Calhern had Zucco's money on him when he was arrested. Calhern's heavies kidnap Douglas, and Dumbrille has to hold off the district attorney, but the judge finally lets Calhern go. Rice sets out to find Douglas, who has gotten loose from the thug who was watching him, but Calhern arrives with another thug. The police arrive just in time to save the day.
Douglas goes to see Dodd and asks her about her relationship with Calhern. She gives him the list of stolen books. She tells him that Frye killed Zucco, but he tells her that she did it. Then Calhern comes in, but Douglas overpowers him.
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