Faruqi & Faruqi, LLP Securities Litigation Partner James (Josh) Wilson Encourages Investors Who Suffered Losses in Rackspace to Contact Him Directly to Discuss Their Options
New York, New York--(Newsfile Corp. - August 26, 2026) - Faruqi & Faruqi, LLP, a leading national securities law firm, reminds investors of the September 28, 2026 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against Rackspace Technology, Inc. ("Rackspace" or the "Company") (NASDAQ: RXT).
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WHY: Faruqi & Faruqi, LLP, a leading national securities law firm, informs investors of the federal securities class action on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired Rackspace securities between May 7, 2026 and July 8, 2026, inclusive (the "Class Period").
WHAT TO DO NEXT: To learn more about the Rackspace class action, go to www.faruqilaw.com/RXT or call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). A class action lawsuit has already been filed.
If you wish to serve as lead plaintiff, you must move the Court no later than September 28, 2026. The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
THE ALLEGATIONS:
As detailed below, the complaint alleges that the Company and its executives violated federal securities laws by making false and/or misleading statements and/or failing to disclose that: (1) the Company's enterprise AI efforts would require Rackspace to significantly re-prioritize its capacity and capital away from the profitable Private Cloud segment; (2) that Rackspace's Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms; (3) that, as a result, Rackspace was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business; (4) as a result, the Company's fiscal year 2026 revenue would be significantly impacted; and (5) that, as a result of the foregoing, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
Faruqi & Faruqi, LLP also encourages anyone with information regarding Rackspace's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Frequently Asked Questions (FAQ) for Investors Regarding the Rackspace Securities Class Action Lawsuit
Who may be eligible to participate in the lawsuit?
Investors who purchased or acquired Rackspace (NASDAQ: RXT) between May 7, 2026 and July 8, 2026 and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310).
How much did Rackspace stock drop?
Following the alleged corrective disclosures, Rackspace shares fell approximately 33.6% on July 9, 2026, as described in the complaint.
Why should investors contact Faruqi & Faruqi, LLP?
Faruqi & Faruqi, LLP is a leading national securities law firm with offices in New York, Pennsylvania, California and Georgia. Faruqi & Faruqi, LLP has represented investors in securities litigation for decades and has recovered hundreds of millions of dollars for shareholders. Investors who purchased Rackspace Technology, Inc. securities during the Class Period may contact the firm to discuss their legal rights, potential claims, and the lead plaintiff process at no cost or obligation.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/311488
Source: Faruqi & Faruqi LLP