Rackspace Securities Class Action Filed

Robbins LLP announced that a securities class action has been filed against Rackspace Technology, Inc. (NASDAQ: RXT) on behalf of investors who purchased Rackspace securities between May 7, 2026 and July 8, 2026. The lawsuit alleges that Rackspace made materially false or misleading statements regarding its business, operations, and financial condition. Specifically, the complaint claims that Rackspace failed to disclose that its enterprise AI efforts would require significant re-prioritization of capacity and capital away from its profitable Private Cloud segment, that Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms, and that the company would likely reduce a material portion of its Public Cloud infrastructure resale business. The lawsuit stems from Rackspace's May 7, 2026 announcement of a memorandum of understanding with AMD, Inc. (AMD) to establish a new category of governed enterprise AI infrastructure, and subsequent statements by CEO Gajen Kandiah reaffirming full-year guidance. On July 9, 2026, Rackspace disclosed second quarter results, revealing a $150 million reduction in full-year 2026 revenue guidance and a $25 million cut in Private Cloud revenue outlook, causing its stock to fall 33.6% to $4.37 per share. Investors seeking to become lead plaintiff must submit papers by September 28, 2026.