CORVEL CORPORATION (NASDAQ:CRVL) Files An 8-K Regulation FD Disclosure
On June 11, 2020, CorVel Corporations (the Companys) board of directors approved the Company entering into a pre-arranged stock trading plan on June 12, 2020 to repurchase shares of its common stock, subject to certain limitations, commencing June 15, 2020 through August 14, 2020 in connection with resuming the Companys stock repurchase program that had been temporarily suspended in March 2020. The stock trading plan will be in accordance with guidelines specified under Rule 10b5-1 and Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and consistent with the Companys policies regarding stock transactions. Rule 10b5-1 provides a safe harbor for public companies to adopt written, pre-arranged stock trading plans when they do not have material, nonpublic information in their possession. All bids and the amounts purchased shall at all times be consistent and compliant with the pricing and volume limitations of Rule 10b-18.
The shares authorized to be repurchased to the resumption of the Companys stock repurchase program may be purchased from time to time at prevailing market prices, through open market, or unsolicited negotiated transactions, depending upon market conditions. There is no guarantee as to the timing and exact number of shares that will be repurchased by the Company, and the Company may discontinue repurchases without notice at any time that management determines additional repurchases are not warranted. The repurchased shares may be used for general purposes, including issuance under the Companys stock option and employee stock purchase plans, although historically repurchased shares have remained in treasury.
The information contained in this Item 7.01 is being furnished to the Securities and Exchange Commission and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liability of that section, or incorporated by reference in any filing under the Exchange Act or the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995
All statements included in this report, other than statements or characterizations of historical fact, are forward-looking statements. These forward-looking statements are based on the Companys current expectations, estimates and projections about the Company, managements beliefs, and certain assumptions made by the Company, and events beyond the Companys control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to the Companys stock repurchase program. These forward-looking statements are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause the Companys actual results to differ materially and adversely from those expressed in any forward-looking statement.
The risks and uncertainties referred to above include, but are not limited to, the amount and timing of any stock repurchases under the Companys stock repurchase program, if any, and the Companys ability to repurchase shares of its common stock and how those repurchased shares may be used; the possibility of legislation being adopted in future that could adversely impact companies with stock repurchase programs; the Companys ability to generate cash; the Companys results of operations; and the other factors described in this report and the Companys filings with the Securities and Exchange Commission, including but not limited to Risk Factors in the Companys Annual Report on Form 10-K for the year ended March 31, 2020. The forward-looking statements in this report speak only as of the date they are made. The Company undertakes no obligation to revise or update publicly any forward-looking statement for any reason.