Paul7:
The online shooting community boycotted S&W after it signed the Clinton settlement, which went much further than stated in the Wiki article linked above.
See this old post for info:
http://www.gunowners.org/a032100.htm
Several major companies such as Sig & Glock were ready to sign as well and the deal was an existential threat to the 2nd amendment.
Every S&W thread was derailed with calls to boycott.
Many shooters dumped their S&Ws on the 2nd hand market, creating a glut of good 2nd hand guns, preventing the sale of new guns.
Some stocking dealers packed up their stock and returned it to S&W.
People who purchased S&Ws, new or old, were labeled traitors.
The boycott was close enough to total that S&W, who at the time were highly reliant on the civilian market (Glock was ascendent in the LEO market), laid off workers and was rapidly going broke.
At one point we had a S&W factory employee on the forums, arguing for their jobs. The response was "S&W Delenda Est".
Eventually the British owners of S&W saw the value of their investment fall from 160 million to near nothing. They sold it on a part payment scheme for 30 million to Saf-T-Hammer, the company that designed the locks. Which is why the locks remain, apart from any state based laws.
Saf-T-Hammer changed its name to S&W holdings and appointed a former armed robber as president. The company could not survive a boycott by gun owners, it easily survived the bad publicity of being run by a guy who spent 16 years in jail.
The other manufacturers understood and refused to sign on to the Clinton agreement, or the similar deal being pushed in NYS by Elliot Spitzer.