August 5, 2013 (Shareholders Foundation) - An investigation on behalf of investors of TearLab Corp (NASDAQ:TEAR)) shares over potential securities laws violations by TearLab and certain of its directors and officers in connection certain financial statements was announced.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of TearLab Corp (NASDAQ:TEAR) concerning whether a series of statements by TearLab Corp regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

TearLab Corp reported that its annual Total Revenue rose from $0.87 million in 2009 to $3.96 million in 2012, while its Net Loss increased from $4.39 million in 2009 to $19.31 million in 2012. Shares of TearLab Corp (NASDAQ:TEAR) grew from $1.01 in early 2010 to as high as $14.73 per share.

On August 1, 2013, an article was published that alleged that some of the doctors listed on the website of TearLab Corp were providers of its diagnostic test for dry eye disease ('DED') no longer use the machine and had already returned it.
Shares of TearLab Corp (NASDAQ:TEAR) declined from $14.85 per share on July 30, 2013, to $11.40 per share on August 2, 2013.

On August 5, 2013, NASDAQ:TEAR shares closed at $12.73 per share.