Big Dig defendant settles lawsuit

Prosecutors will drop a manslaughter charge against the only company charged in Boston’s fatal Big Dig tunnel collapse after the epoxy maker agreed to pay $16 million to settle a lawsuit.

Powers Fasteners Inc. also will take steps to prevent the wrong type of epoxy from being used by its customers, said Max Stern, a company attorney. The Brewster, N.Y., company was indicted after the tunnel’s collapse in July 2006, which killed a woman riding in a car with her husband.