This is funny. Everyone is posting as if S&W isn't lying about their product.
Um why can't the gun just be defective and it not be the ammo?
1. Because S&W has a solid reputation for their firearms and customer service if it is their fault.
2. They have lab results that would most likely hold up in the court of law due to the careful nature of their inspection/lab process.
Sorry you're ticked L2R. But your expectations of what S&W should be doing for you is above and beyond reasonable, plain and simple. They've offered you another gun at a good discount in show of good faith even though the findings weren't their fault. Let it go and take the offer.
You can contact Federal and see what they have to say. I wouldn't expect much. You can show all the evidence you want but neither you nor S&W can prove there wasn't bullet setback on the round you fired that caused the damage. "But Shane, if there's bullet setback, then why isn't it Federal's fault?" Because you can't prove you didn't dry cycle that loaded round multiple times which has been proven setback happens even with factory ammo.