Faruqi & Faruqi urges Rackspace investors to seek legal counsel
News provided byRackspace Technology, Inc · 2 min read
Faruqi & Faruqi, LLP, a leading national securities law firm, has urged Rackspace Technology, Inc. (NASDAQ: RXT) investors to seek legal counsel before the September 28, 2026, deadline to serve as lead plaintiff in a federal securities class action.
The class action, filed by Faruqi & Faruqi, LLP, represents all persons and entities other than the defendants who purchased or otherwise acquired Rackspace securities between May 7, 2026, and July 8, 2026. According to the firm, the lawsuit is based on alleged false and misleading statements made by the company and its executives.
The complaint alleges that Rackspace and its executives violated federal securities laws by failing to disclose important information about the company's business. Specifically, the lawsuit claims that the company's enterprise artificial intelligence (AI) efforts would require significant re-prioritization of resources away from its profitable Private Cloud segment. Additionally, the complaint states that Rackspace's Public Cloud revenue was declining as customers shifted directly to hyperscale cloud platforms. As a result, the company was likely to significantly reduce its Public Cloud infrastructure resale business, with fiscal year 2026 revenue expected to be significantly impacted.
Faruqi & Faruqi, LLP partner Josh Wilson advises investors to act quickly. "It's crucial for potential lead plaintiffs to move the court by the September 28, 2026, deadline to ensure their voice is heard in the class action," he said.
Investors who wish to participate in the lawsuit can contact Faruqi & Faruqi, LLP directly by calling partner Josh Wilson at 877-247-4292 or 212-983-9330 (Ext. 1310). The firm also encourages anyone with information regarding Rackspace's conduct to come forward, including whistleblowers, former employees, and shareholders.
Following the alleged corrective disclosures, Rackspace shares fell approximately 33.6% on July 9, 2026, as detailed in the complaint. Faruqi & Faruqi, LLP, with offices in New York, Pennsylvania, California, and Georgia, has a long history of representing investors in securities litigation, having recovered hundreds of millions of dollars for shareholders.
If you purchased or acquired Rackspace (NASDAQ: RXT) securities between May 7, 2026, and July 8, 2026, and would like to discuss your legal rights and potential claims, contact Faruqi & Faruqi, LLP. The firm offers no-cost consultations to help investors understand their options.
For updates on the case, follow Faruqi & Faruqi, LLP on LinkedIn, Twitter, or Facebook.