 In the second of the "Billy the Kid" series from PRC that starred Bob Steele, Billy the Kid (Bob Steele) is being held on a trumped-up murder charge in a Mexico jail. He escapes and meets his pal, Fuzzy Jones (Al S. John), in Corral City, Texas, which is taking a holiday to allow the cowpunchers of the Lazy A Ranch their periodic spree. In the saloon, Billy is recognized by Dave Hendricks (Charles King) and Flash (John Merton), two the Lazy A s bed men, as the rider who had held them up after they had robbed the express wagon a few hours earlier. Outside, Billy is ambushed and slightly wounded, and is taken to the express office by Jim Morgan (Frank LaRue) where Mary Barton (Terry Walker), the local agent, agrees to tend him until the doctor arrives. Billy turns over the loot he took from the outlaws and he is appointed sheriff, with Fuzzy as his deputy. The Lazy A gang brings in a noted gunfighter, Gil Cooper (Carleton Young), who turns out to be Billy s brother. Billy, Gil and Fuzzy eventually rout the outlaw gang, and Gil remains behind with Mary as Billy and Fuzzy ride off. "Battling Outlaw" is not a 1940 alternate title for this film; "Battling Outlaw" was a changed-for-TV title given this film in 1951, as is "Texas Trouble."