{"id":48583,"date":"2026-07-31T05:00:00","date_gmt":"2026-07-31T03:00:00","guid":{"rendered":"http:\/\/stocks-future.com\/?guid=8cb028cc4c92f574fe11b9009fcde98f"},"modified":"2026-07-31T05:00:00","modified_gmt":"2026-07-31T03:00:00","slug":"investor-alert-securities-class-action-filed-against-rackspace-technology-inc-investors-encouraged-to-contact-kirby-mcinerney-llp","status":"publish","type":"post","link":"https:\/\/stocks-future.com\/?p=48583","title":{"rendered":"INVESTOR ALERT: Securities Class Action Filed Against Rackspace Technology, Inc. \u2013 Investors Encouraged to Contact Kirby McInerney LLP"},"content":{"rendered":"

NEW YORK--(BUSINESS WIRE)--$RXT<\/a> #classactionlawsuit<\/a>--The law firm of Kirby McInerney LLP<\/a> announces that a class action lawsuit has been filed on behalf of investors who acquired Rackspace Technology, Inc. (\u201cRackspace\u201d or the \u201cCompany\u201d) (NASDAQ: RXT) common stock between May 7, 2026 and July 8, 2026, inclusive (\u201cthe Class Period\u201d).<\/p>

If you suffered a loss on your Rackspace investments, you have until September 28, 2026<\/b> to request lead plaintiff appointment. Courts do not consider lead plaintiff applications submitted after this deadline. If you choose to take no action, you may remain an absent class member. For more information about the lawsuit:<\/p>

[CONTACT THE FIRM IF YOU SUFFERED A LOSS<\/a>]<\/p>

What Is This Lawsuit About? <\/b>The lawsuit alleges that Rackspace made materially false and\/or misleading statements and failed to disclose material adverse facts about the Company\u2019s business, operations, and prospects as it failed to disclose to investors that (i) the Company\u2019s enterprise AI efforts would require Rackspace to significantly re-prioritize its capacity and capital away from the profitable Private Cloud segment; (ii) Rackspace\u2019s Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms; (iii) as a result, Rackspace was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business; and (iv) as a result, the Company\u2019s fiscal year 2026 revenue would be significantly impacted.<\/p>

On May 7, 2026, Rackspace announced a partnership with AMD to create an enterprise AI cloud The same day, the Company reaffirmed the fiscal 2026 guidance that had been provided in February and held an earnings call where management described Rackspace\u2019s growth and readiness for its new AI pivot, as well as purported details of the mechanics of the AMD deal.<\/p>

On June 16, 2026, the Company announcing a workforce realignment plan \u201cintended to accelerate the Company\u2019s strategic transformation as the operator for governed enterprise AI\u201d whereby the Company said it expected to realize \u201c$75 million to $85 million in annualized run-rate savings compared to current expense levels.\u201d This plan included a 15% reduction in workforce.<\/p>

On July 9, 2026, Rackspace published its second quarter 2026 financial results and \u201ca strategic and financial update on its transition to becoming the operator of the full enterprise AI stack\u201d and held an earnings call to discuss results. The Company revealed that its AI investments would require a significant re-prioritization of resources, reduced its full year 2026 revenue guidance by $150 million, and reduced its full year 2026 Private Cloud revenue outlook by $25 million, \u201cgiven the low-margin nature of the exited revenues across both business units and investments in AI compute capacity.\u201d Management further explained that the reduced guidance was in part due to the decision to \u201credeploy [] capacity and capital towards higher-yielding AI deployments.\u201d Management also stated that \u201cWe are reducing our public cloud revenue estimate for 2026 by $125 million, driven by this decision to exit low-margin public cloud infrastructure resale revenue and a continuation of the trend of hyperscaler direct contracting.\u201d Finally, the Company explained that \u201c[l]ower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping.\u201d On this news, Rackspace\u2019s stock price fell $2.21, or 33.6%, to close at $4.37 per share on July 9, 2026.<\/p>

[LEARN MORE ABOUT THE LAWSUIT<\/a>]<\/p>

The Lead Plaintiff Appointment Process. <\/b>The federal securities laws permit any investor who acquired eligible securities during the class period to seek appointment as lead plaintiff in a <\/i>class action lawsuit. Learn more about the lead plaintiff process and eligibility requirements here<\/a>. Courts typically appoint the investor(s) with the largest financial loss in the case and the ability to represent the class rather than investors with simply the largest investment portfolio. Courts regularly appoint individual investors, whether acting alone or as a group, as lead plaintiffs. The rights of any investor who bought shares during the class period are generally already protected. However, lead plaintiffs have the power to influence case strategy and have a say in settlement decisions, as well as decisions concerning allocation of settlement funds among class members.<\/p>

[LEARN MORE ABOUT THE LEAD PLAINTIFF PROCESS<\/a>]<\/p>

What Should I Do? <\/b>If you purchased or otherwise acquired Rackspace securities, have information, or would like to learn more about this investigation, please contact Lauren Molinaro<\/a> of Kirby McInerney LLP<\/a> by email at investigations@kmllp.com<\/a>, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.<\/p>

Kirby McInerney LLP<\/a> is a New York-based plaintiffs\u2019 law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm\u2019s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP\u2019s website<\/a>.<\/p>

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.<\/p><\/a><\/a> Contacts<\/b>

Kirby McInerney LLPLauren Molinaro, Esq.212-699-1171https:\/\/www.kmllp.com<\/a>https:\/\/securitiesleadplaintiff.com\/<\/a>investigations@kmllp.com<\/a><\/p>","protected":false},"excerpt":{"rendered":"

NEW YORK–(BUSINESS WIRE)–$RXT #classactionlawsuit–The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed on behalf of investors who acquired Rackspace Technology, Inc. (\u201cRackspace\u201d or the \u201cCompany\u201d) (NASDAQ: RXT) co…<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-48583","post","type-post","status-publish","format-standard","hentry","category-infos-businesswire"],"_links":{"self":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/48583","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=48583"}],"version-history":[{"count":1,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/48583\/revisions"}],"predecessor-version":[{"id":48584,"href":"https:\/\/stocks-future.com\/index.php?rest_route=\/wp\/v2\/posts\/48583\/revisions\/48584"}],"wp:attachment":[{"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=48583"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=48583"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stocks-future.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=48583"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}