Negotiations to create a fund to compensate women who accused Harvey Weinstein of unwanted sexual conduct reached an impasse this week when lawyers representing alleged victims of the former Hollywood producer withdrew from the discussions, according to people familiar with the matter.

Since last year, lawyers for Mr. Weinstein, his former film studio and its onetime board members, the New York attorney general’s office and insurance companies had been negotiating what they had hoped would be a sweeping settlement of many...