A Massachusetts gun-maker has agreed to pay nearly $600,000 to the families of one man killed and another man wounded in a shooting involving a gun allegedly stolen from the company.

Danny Guzman was slain outside a Worcester nightclub in 1999.

His family and the family of the wounded man filed a wrongful death suit against Kahr Arms. The lawsuit alleged that the gun was stolen and later sold by a Kahr employee with a criminal record.

The Brady Center to Prevent Gun Violence announced the settlement in Washington, D.C., on Tuesday. It calls it the largest damages payment ever made by a gun manufacturer accused of negligence leading to the criminal use of a gun.

Guzman's relatives say Kahr should have done employee-background checks and used metal detectors to prevent gun thefts.