SBS says Rackspace investors may seek lead plaintiff in securities suit

By Atlas Watchline Staff · Legal · August 17, 2026

Schall, Brown & Schwartz LLP says Rackspace Technology investors who bought shares during a stated class period may contact the firm about lead-plaintiff appointment in a securities fraud case.

Schall, Brown & Schwartz LLP said Aug. 17 that investors who bought Rackspace Technology Inc. shares during a stated class period may seek lead-plaintiff appointment in a securities class action against the company.

According to the PR Newswire release, the complaint alleges Rackspace made false and misleading statements to the market from May 7, 2026, to July 8, 2026. The release says the claims cite Section 10(b), Section 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5.

The release says the allegations center on Rackspace's enterprise AI business and its effect on the company's Private Cloud operation. It says the complaint claims the AI business drew investment and capacity away from the Private Cloud segment, that Private Cloud revenue fell as customers moved to hyperscale platforms, and that fiscal 2026 revenue would be significantly affected by those market challenges.

The notice also says investors suffered damages when the market learned the truth about Rackspace. It identifies Rackspace as Nasdaq-listed under the ticker RXT.

SBS named Brian Schall and David Schwartz as contacts for investors at its Los Angeles office. The release lists a phone number, website and email address for the firm.

The class has not yet been certified, the release said.

Sources

• PR Newswire: “RXT Investors Have Opportunity to Lead Rackspace Technology, Inc. Securities Fraud Lawsuit With SBS Law”

Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.

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