A shareholder lawsuit against Sen. Richard Burr (R-N.C.) over his stock sales in the early days of the coronavirus outbreak is being dropped in order to avoid overlapping with potential federal investigations.

Alan Jacobson, who owns stock in Wyndham Hotels and Resorts, had accused Burr of securities fraud for selling off stocks ahead of the economic downturn caused by the pandemic. Jacobson alleged that Burr was acting off of nonpublic information that he learned in his capacity as chairman of the Senate Intelligence Committee.

CNN reported last month that the Justice Department and Securities and Exchange Commission (SEC) are investigating the transactions.

"In consideration of the effect that this lawsuit may have on any pending criminal or civil investigation into Defendant Richard M. Burr’s conduct by the U.S. Department of Justice and the U.S. Securities and Exchange Commission, as well as the effect those investigations will have on the discovery process in this action, Plaintiff Alan D. Jacobson has elected not to proceed further with this lawsuit at this time," Jacobson's lawyers wrote in a filing on Friday.

A spokeswoman for Burr's office declined to comment.

The senator has denied that the sales were improper and requested a congressional ethics investigation.

"I relied solely on public news reports to guide my decision regarding the sale of stocks on February 13," Burr said in a statement in March. Specifically, I closely followed CNBC’s daily health and science reporting out of its Asia bureaus at the time. Understanding the assumption many could make in hindsight however, I spoke this morning with the chairman of the Senate Ethics Committee and asked him to open a complete review of the matter with full transparency.”

ProPublica reported the 33 stock sales in March, which amounted to somewhere between $628,000 and $1.72 million. The transactions came a week before the markets dropped sharply, falling nearly 40 percent by late March.