In the summer of 2003, the band went into a studio to write and record new material for a new album, tentatively titled Cigarettes and Valentines.[40] After completing 20 tracks, the master recordings were stolen from the studio. Instead of re-recording the stolen tracks, the band decided to abandon the entire project and start over, considering the taken material to be unrepresentative of the band's best work.[41] It was then revealed that a band called The Network was signed to Armstrong's record label Adeline Records with little fanfare and information. After the mysterious band released an album called Money Money 2020, it was rumored that The Network was a Green Day side project, due to the similarities in the bands' sounds.[42] However, these rumors were never addressed by the band or Adeline Records, except for a statement on the Adeline website discussing an ongoing dispute between the two bands.
Green Day collaborated with Iggy Pop on two tracks for his album Skull Ring in November 2003. On February 1, 2004, a new song, a cover of "I Fought the Law" made its debut on a commercial for iTunes during NFLSuper Bowl XXXVIII. American Idiot (2004), debuted at number one on the Billboard charts, the band's first album to reach number one, backed by the success of the album's first single, "American Idiot". The album was labeled as a punk rock opera which follows the journey of the fictitious "Jesus of Suburbia".[43] The album depicts modern American life under the control of an idiot ruler who let people be misinformed by the media and a "redneck agenda". It gives different angles on an everyman, modern icons, and leaders.[44] Released two months before U.S. President George W. Bush was reelected, the album became protest art.[45] American Idiot won the 2005 Grammy for Best Rock Album. The band also won a total of seven out of eight awards for which the group was nominated, including the Viewer's Choice Award at the MTV Video Music Awards in 2005

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