Redbook just refers to standard cd's as opposed to sacd or dvd. It was simply what it was called back when cd's were being developed because the hard info was kept in a red colored binder.
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It's not an urban myth. The group was spearheaded by a four man clique, naturally called "The Gang of 4". They took their names from a popular American film of the time that was a thinly veiled Marxist critique of the corrosive effect of business on the family structure. "Michael" was killed when hit by a bus crossing a busy Tokyo street. He didn't hear the horn because he was wearing a CD Walkman. "Sonny" was shot and paralyzed by one of his mistress. The police believe it to be a simple crime of passion. "Tom" disappeared on a flight back to Japan from the Netherlands. The case was never solved. After the Tom-incident, "Fredo" retired and now runs a string of strip clubs in Yokohama.