This crap makes me so cross. I've lots of experience of it though.
My three children went to the same primary where they all did very well There were regular awards, god can't even remember how often now tbh, could have been weekly. Anyway, none of mine ever got an award term 1 or term 2. Usually towards the end of term 3 when they must have gone, "oh who hasn't had an award yet, oh little lies!" It actually became a family joke. The only exception was the month my mother died a few weeks before Christmas.
Year in year out they watched the same favoured few - relatives/friends/associates of teachers get the awards first up, get picked for the main roles in school events, get first dibs at the very limited music tuition, yada yada yada. Half the teachers were related to the other half pretty much - trust me this did not go unnoticed by parents either! The standard of teaching was good, and the school had many good qualities but the nepotism was blatant.
Elder two went to a church organisation which they enjoyed - think along the lines of Guides, but not Guides. Same story - year in year out the same kids got awards. There was one horrible year when my little girl was sitting there amongst her peers and was the only one to get nothing. I'd have taken them out there and then but they enjoyed it the rest of the time.
They all learned not to expect anything and not to care, and you know, it's all water under the bridge. They're successful adults and decent human beings, and they didn't need any of the crap.
In your shoes, @OhOGee - I would forward that email to the principal now, while you are still angry. The immediate impact will have faded over the holidays and you shouldn't let this go. Explain how upset your little boy is, and ask how the school is going to make this up to him. They can't fix the hurt he felt on the day though, so I'd like others let him eat his body weight in treats, and do some nice things with him.
Tell him that schools/teachers mess things up sometimes and this isn't his fault. Make sure he knows he has your back too. His teacher dismissing it like that is not on. They let him down.
My then 18 yr old had a run-in with a teacher a few weeks before A levels. Teacher is renowned for poor teaching - no idea why he's allowed to get away with it. Treated my DS badly when he was teaching him, but DS is a chip off the old block (me) and stood up to him, which teacher hated. Hadn't taught him for a couple of years at the time of this incident, but basically he ordered DS to hand over his phone (this was not during teaching hours and all the other kids had their phones out - I know this as fact). Teacher ended up chasing DS round the room trying to physically grab his mobile phone, and cornered him! All in front of DS' mates and a year 9 class waiting to come in.
Bloody teacher then had the brass neck to phone me to complain!! I reminded him my DS was 18 and I was not going to get into any petty nonsense over a mobile, etc, he put the phone down on me!! I was going to complain but there were so few weeks left I couldn't be arsed, and let it go.
Point of this anecdote was, it meant so much to DS that I had his back - and it will to your boy too.
I really regret not following it up especially as I think it might have given the school an 'in' to deal with teacher's behaviour. A few weeks on, hadn't thought any more about it - year head speaks to DS, fucking bastard teacher had complained about him! Year head heard him out, and asked him did he want to make a complaint, and he said no.
Sorry that turned into a bit of a dissertation!! But do strike while the iron is hot. Your DS' teacher's nonchalance about it would really grind my gears!