My buddy has been having some major issues with his brand new Kahr CW40 since he bought it; brand new. It has been a struggle through the break-in period.

The problems:
-Failure to Feed. It seems that almost one or two in every 40-50 rounds will not feed correctly and bind between the extractor and feed ramp. The bullet must be forced back into the barrel for it to be ejected.
-Magazine ejection. Every 2-3 rounds the magazine will pop out of the bottom of the gun.
-(lack of) Accuracy. awful grouping (>12" at 7 yards.)

Pertinent Negatives:
-Not ammo related- Have shot several different brands, lots, and types of .40sw ammo. The same ammo functions flawlessly in other guns.
-Not maintenance related- the gun has been broken in as recommended by Kahr, and has been regularly lubricated and cleaned.
-Not shooter related- the gun has performed this way for several experienced shooters. We have also tried several different grips (both hands, strong hand, weak hand, few fingers) to see if the shooters grip was affecting the performance of the gun- it was not. In addition we have tried slow fire and rapid fire to see if one or the other was worse- both were just as bad.
-Not magazine related- the gun performs this way no matter which magazine is in the firearm. We have three different magazines that all have the same issues. sometimes we can get through a full magazine, but its not the same magazine.

Any thoughts?

I had the exact same issues with my Kahr CW40.  It has taken over 500 rounds to break-in the gun.  I don't have any feed issues anymore, and it's a great gun.  I personally think that the spring is too strong, because the action is so stiff and hard to operate when it's new.  Hang in there with it.  I just added a Crimson Trace laser, and I'm having a blast with it.  

I did have to send the gun back to Kahr because of the mag ejection problem - which is somewhat common.  I guess it was an issue with the mag, not the gun.

Thank you for your response,
  I find the mag ejection most concerning- especially that the problem happens with all the magazines. Im sure the feed issues will work themselves out when the gun is broken in.