Sorry to hear about this fiasco OP. It will be a long and painful process, but I hope you get your fair resolution you're looking for. I've always been nervous to ship my own games because of potential situations like this.
I did ask a local Pinsider who shipped three games in about a month's time, how he packs games for shipment. I think he gives solid advice, and it gave me a good laugh too.
Here is his process:
"I always have the game in my garage and ready to go the day before shipping.
Here is my packing process:
-Coin box out. Balls out.
-Fold the head down (cardboard between the head and the game)
-Cut cardboard to cover the entire machine
-Shrink wrap the shit out of it (the good thick stuff from home depot)
-Tip the game up and take off the legs, shrink each separately and then together as one
-Continue to shrink wrap the shit out of it until you think you're overdoing it. Then continue shrink wrapping!
-Lastly, shrink wrap the coin box to the front of the machine (game on it's back, coin door facing up, set the coin box there and wrap over it)
The shippers will show up and take the machine with the coin box. Don't forget to give them the legs. Then you're all done."