Sorry. But I don't buy the poster's logic in here.
Everything you buy with a warranty includes the cost of the warranty in the purchase price. It is the same faulty logic of people not using the health care they get as part of their compensation. If your company stopped providing health care they had previously, they should give you a raise in order to make it fair. The health care is being paid for by the worker.
Same thing with any item with a warranty. If it comes with a warranty, the company has already run a regression figuring out the failure rate, the chance of return, and put that into the cost of the item.
He used supposedly factory ammo. S&W should be taking care of it. If not their fault, they should at least be contacting the main stream ammo manufacture for the buyer.
I would call and ask for a manager.
(all assuming the ammo is regular stuff)