If the dealer.....
If the dealer doesn't satisfy you, call S&W. If you were using factory ammo I know they will want to see what's going on as well as brass and unfired rounds. If it has live ammo I'm sure it must be shipped ground, but S&W will know all of that.
Did you check to see if the barrel was blocked. If there was a squib in that batch of ammo and the case ejected or was ejected, it's highly likely the backup of gas would back up and come out the mag well.
If the gun is at fault, S&W owes you something. If the ammo is at fault, that ammo manufacturer owes you something. Good luck and I hope you pursue it and hopefully get some sort of compensation. I don't care if it's a Maytag or a Whirlpool, it shouldn't blow up first time out.
Honestly I would suspect the ammo first. Not that something couldn't be wrong with an S&W gun, there certainly could, but what malfunction would cause the gun to explode? It just sounds more like an Ammo problem.
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