The Battle of the Statue of Liberty was a battle fought between the X-Men and the Brotherhood of Mutants. Led by Cyclops, the X-Men were out to stop the terrorist Magneto from trying to convert world leaders into mutants, an atomic process which would kill them. In the end, the X-Men prevailed and Magneto was imprisoned.
Shortly after his second falling out with Charles Xavier, Erik Lehnsherr, the mutant terrorist known as Magneto, began to reform his Brotherhood of Mutants. Recruiting Sabretooth and Toad, Erik was once again joined by former ally Raven Darkholme. With the three, Erik created a machine that could potentially turn humans into mutants. However, Erik only used the machine after Senator Robert Kelly proposed the Mutant Registration Act. Kidnapping Kelly and turning him into a mutant, the senator escaped before Erik could learn the process to be fatal.
Knowing that Charles would have his "X-Men" try and stop him, Erik had Raven inject Charles with a serum that would temporarily render him comatose. He then researched more into the mutant Rogue and realized that it was she who held the potential to power his machine in order to transform the entire population of world leaders into mutants. Using the Wolverine's Adamantium bones to his advantage, Magneto kidnapped Rogue himself.
Confronting the Brotherhood at the Statue of Liberty, Wolverine fought Raven whilst Storm fought Toad. Seemingly killing Raven, Storm did kill Toad, blasting him out into the water surrounding the Statue. Making their way up the Statue, Cyclops and Jean Grey were incapacitated by Magneto and Wolverine went to fight Sabretooth. Eventually Wolverine, with the help of Cyclops, killed Sabretooth and set out to rescue Rogue. When a shot became open, Cyclops incapacitated Magneto and the X-Men rescued Rogue.
Raven escaped posing as a wounded security guard and for some time impersonated Senator Robert Kelly, using "her political influence" to have a hand in world politics. Erik on the other hand was imprisoned by the US Military in a plastic prison. There he was tortured for information by William Stryker, leading to the Battle of Alkali Lake.