IRVINE, Calif., June 14, 2013 /PRNewswire/ -- CorVel Corporation (NASDAQ :CRVL) announced that pursuant to Board of Directors approval, the Company entered into a pre-arranged stock trading plan on June 11, 2013 to spend up to $14 million to repurchase shares of its common stock commencing June 26, 2013 through August 21, 2013. The stock trading plan will be in accordance with guidelines specified under Rule 10b5-1 and Rule 10b-18 of the Securities and Exchange Act of 1934 and consistent with CorVel Corporation's policies regarding stock transactions. Rule 10b5-1 allows public companies to adopt written, pre-arranged stock trading plans when they do not have material, non-public 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.
CorVel initiated its stock repurchase program in the fall of 1996. From the program's inception through March 31, 2013, the Company has spent $301 million to repurchase 15,658,507 shares, equal to approximately 59% of the outstanding common stock had there been no repurchases. These repurchases have been funded primarily from net earnings. CorVel had 10,760,124 shares of common stock, net of treasury shares, outstanding as of March 31, 2013.
The shares authorized to be repurchased under the repurchase program may be purchased from time to time at prevailing market prices, through open market, block trade or unsolicited negotiated transactions, depending upon market conditions. There is no guarantee as to the exact number of shares that will be repurchased by CorVel, and the Company may discontinue repurchases at any time that management determines additional repurchases are not warranted. The repurchased shares may be used for general purposes, including issuance under the Company's stock option and employee stock purchase plans, although historically repurchased shares have remained in treasury.