Settlement OKd: Davstar Industries Ltd. of Costa...

Settlement OKd: Davstar Industries Ltd. of Costa Mesa, a maker of disposable medical products, said Wednesday that a federal judge has approved a settlement that will give shareholders $1 million worth of warrants to purchase company stock in the future.

Shareholders who filed the class-action suit had charged that the company had made a series of false statements about its potential earnings. The company did not admit to any wrongdoing in settling the case.

Separately, the company also said it will change its name to UroHealth Inc. pending approval by the American Stock Exchange. The company completed the purchase of UroHealth, a Louisville, Ky., outpatient clinic with three employees.

The purchase and name change is aimed at bolstering Davstar’s distribution strategy, said Michael Piraino, Davstar’s executive vice president. He would not reveal the purchase price.