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One civil rights leader in Atlanta praised the settlement effort.
But Justice Department officials said the settlement effort did not mean the department would drop the suit.
Both Mr. Annan and Secretary of State Colin L. Powell have warned the Cypriots that no other settlement effort is on the horizon.
Shaul Yahalom, a leader of the rightist National Religious Party, which supports the settlers, said that such acts "undermine the moral basis" of the settlement effort.
He said Ms. Rehnquist did not take a position on the issue, and that the settlement effort failed because Ms. Rehnquist's lawyers opposed the position taken by the medical groups.
"While we welcome any good faith settlement effort, it's hard to apply that label to a demand that Microsoft pay royalties to Google far in excess of market rates, that refuses to license all the Microsoft patents infringed by Motorola, and that is promptly leaked to the press," said Horacio Gutierrez, Microsoft's deputy general counsel.
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We are hopeful that the settlement efforts will be successful".
She declined to discuss the settlement efforts, as did Mr. Rampe.
But lawyers said the insurer and the plaintiffs remained far apart in the settlement efforts.
The city was named for Amos A. Lawrence, a New England textile manufacturer who funded the company's settlement efforts.
"These settlement efforts show this administration's firm commitment to fully enforcing our environmental laws," Christie Whitman, the E.P.A. administrator, said.
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