Sec Form 4 Filing - Eberwein Jeffrey E. @ DIGIRAD CORP - 2016-07-31

FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person Eberwein Jeffrey E. 2. Issuer Name and Ticker or Trading Symbol DIGIRAD CORP [ DRAD] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) X __ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 1048 INDUSTRIAL COURT 3. Date of Earliest Transaction (MM/DD/YY) 07/31/2016 (Street) SUWANEE, GA30024 4. If Amendment, Date Original Filed (MM/DD/YY) 6. Individual or Joint/Group Filing (Check Applicable Line) __ X __ Form filed by One Reporting Person _____ Form filed by More than One Reporting Person (City) (State) (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned 1.Title of Security (Instr. 3) 2. Transaction Date (MM/DD/YY) 2A. Deemed Execution Date, if any (MM/DD/YY) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 07/31/2016 M 12,500 A 12,500 ( 3 ) D Common Stock 40,778 I By: Separately Managed Account I ( 4 ) Common Stock 975,366 I By: Lone Star Value Investors, LP ( 5 ) Common Stock 100,000 ( 6 ) I By: Lone Star Value Co-Invest I, LP ( 6 )

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned ( e.g. , puts, calls, warrants, options, convertible securities) 1. Title of Derivative Security (Instr. 3) 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (MM/DD/YY) 3A. Deemed Execution Date, if any (MM/DD/YY) 4. Transaction Code (Instr. 8) 5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5) 6. Date Exercisable and Expiration Date (MM/DD/YY) 7. Title and Amount of Underlying Securities (Instr. 3 and 4) 8. Price of Derivative Security (Instr. 5) 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4) 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr . 4) 11. Nature of Indirect Beneficial Ownership (Instr. 4) Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares Restricted Stock Unit ( 1 ) ( 2 ) 07/31/2016 M 12,500 ( 7 ) ( 7 ) Common Stock 12,500 ( 1 ) 0 D Restricted Stock Unit ( 1 ) 08/02/2016 A 12,500 ( 8 ) ( 8 ) Common Stock 12,500 $ 0 12,500 D

Reporting Owners Reporting Owner Name / Address Relationships Director 10% Owner Officer Other Eberwein Jeffrey E. 1048 INDUSTRIAL COURT SUWANEE, GA30024 X Signatures /s/ Jeffry R. Keyes, as Attorney-in-fact 08/02/2016 Signature of Reporting Person Date

Explanation of Responses:

( 1 )Each Restricted Stock Unit represents the right to receive, at settlement, one share of common stock. ( 2 )This transaction represents the settlement of Restricted Stock Units in shares of common stock on their scheduled vesting date. ( 3 )Excludes 100,000 shares previously owned directly which were transferred to Lone Star Value Co-Invest I, LP ("Co-Invest I"), an entity of which Mr. Eberwein is the sole investor and sole owner, on July 18, 2016. ( 4 )Shares held in an account (the "Separately Managed Account I") separately managed by Lone Star Value Management, LLC ("Lone Star Value Management"). Lone Star Value Management, as the investment manager of the Separately Managed Account I, may be deemed to beneficially own the shares of Common Stock held in the Separately Managed Account I; and Mr. Eberwein, as the sole member of Lone Star Value Management may be deemed to beneficially own the shares of Common Stock held in the Separately Managed Account I for purposes of Section 16. Mr. Eberwein expressly disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. ( 5 )Shares owned directly by Lone Star Value Investors, LP ("Lone Star Value Investors"). Lone Star Value Investors GP, LLC ("Lone Star Value GP"), as the general partner of Lone Star Value Investors, may be deemed the beneficial owner of the securities owned by Lone Star Value Investors. Lone Star Value Management, as the investment manager of Lone Star Value Investors, may be deemed the beneficial owner of the securities owned by Lone Star Value Investors. Mr. Eberwein, as the manager of Lone Star Value GP and sole member of Lone Star Value Management, may be deemed the beneficial owner of the securities owned by Lone Star Value Investors. Mr. Eberwein expressly disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. ( 6 )Represents shares previously reported as directly beneficially owned by Mr. Eberwein but were transferred to Co-Invest I, an entity of which Mr. Eberwein is the sole investor and sole owner, on July 18, 2016. Lone Star Value GP, as the general partner of Co-Invest I, may be deemed the beneficial owner of the securities owned by Co-Invest I. Lone Star Value Management, as the investment manager of Co-Invest I, may be deemed the beneficial owner of the securities owned by Co-Invest I. Mr. Eberwein, as the sole investor and sole owner of Co-Invest I, the manager of Lone Star Value GP and sole member of Lone Star Value Management, may be deemed the beneficial owner of the securities owned by Co-Invest I. Mr. Eberwein expressly disclaims beneficial ownership of such shares except to the extent of his pecuniary interest therein. ( 7 )On July 31, 2015 the Reporting Person was granted 12,500 Restricted Stock Units. As to this grant, 100% of the Restricted Stock Units fully vested on July 31, 2016. ( 8 )One hundred percent (100%) of the Restricted Stock Units are scheduled to vest on the one (1) year anniversary of August 2, 2016, subject to the Reporting Person continuing to be a service provider through such date.

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).

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