CorVel Investor Asks to Sell Stock
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IRVINE — Managed health care provider CorVel Corp. said Thursday that it has asked regulators to allow its largest shareholder to sell 350,000 shares of stock.
The shareholder, Minneapolis-based North Star Universal Inc., will use proceeds to pay off debts, CorVel officials said.
Due to insider trading laws, data communications provider North Star is prohibited from selling more than 45,000 shares a fiscal quarter without permission from the Securities and Exchange Commission, according to V. Gordon Clemons, chairman and president of CorVel. North Star owns about 1.5-million shares or 35% of CorVel’s stock.
The Irvine health-care company welcomes the North Star move, saying it believes the stock sale will make more CorVel shares available to general investors, executives said.
CorVel officials said they expect to receive approval next week.
