Wolf Haldenstein Adler Freeman & Herz LLP announced a securities fraud class action lawsuit has been filed against Rackspace Technology on behalf of investors who purchased or acquired Rackspace securities between May 7, 2026 and July 8, 2026. The complaint alleges that during the class period, defendants made materially false or misleading statements and failed to disclose that Rackspace's enterprise AI efforts would require significant re-prioritization of capacity and capital away from the profitable Private Cloud segment, that Public Cloud revenue was declining as customers contracted directly with hyperscale platforms, and that the company was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business, thereby materially impacting fiscal year 2026 revenue. On July 9, 2026, Rackspace published second quarter 2026 financial results and reduced its full-year 2026 revenue guidance by $150 million, also cutting its full-year Private Cloud revenue outlook by $25 million, causing the stock to fall $2.21 per share, or 33.6%, to close at $4.37. The lead plaintiff deadline is September 28, 2026.
