He definitely got hosed. If it was in good condition, it might be worth $300 to a turkey shoot competitor who really wanted it.
Nobody here can tell you if it's safe to shoot. A qualified gunsmith can give you his opinion after thoroughly inspecting it but I doubt he'll give you a guarantee. If the rear-most bulge can be cut out and still allow legal length (18") then some functionality could be salvaged. It would do for home defense in a pinch but there are much better choices for $300.
I've got a version of the same gun in good condition with a 26" barrel and the best I've ever been offered for it is $60. IMHO- your friend has an expensive tomato stake.
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To a much greater extent than most mechanical devices, firearms are terribly unforgiving of any overconfidence, complacency or negligence.
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