"I think the defendants will need to take it seriously, perhaps even seriously consider settlement negotiations," Mr. Tobias said.
Saying there was "no basis for the report," Charles Miller, a Justice Department spokesman, said in the statement, "While the department is always willing to consider settlement in any case, the suggestion that the department is planning to drop this suit is simply untrue.
After consulting with lawyers familiar with New York State and federal environmental law, Kabak told me that the lawsuit is "very likely meritless," but warned that it "could slow down the process enough to make DOT/MTA consider settlement".
While Israel considers settlements it has established with government approval to be legal, most of the world disagrees.
Still, a health department official said that during hearings, the agency often considers settlements that allow vendors to retain their permits under certain conditions, including the payment of outstanding fines, temporary suspensions and probation.
Secretary of State John Kerry said Sunday's move was "to some degree expected", but stressed that Washington considered settlements "illegitimate".
Much of the international community considers settlements to be illegal under international law.
Indeed, doing so might change the basic motivations of plaintiffs and defendants considering settlements.
According to Peace Now statistics, there are about 190,000 residents in these settlements, several of which are no longer considered settlements and officially have been named as cities, home to more than 30,000 people each including Ma'ale Adumim, Modi'in and Beitar.
