SBS says Rackspace investors may seek lead plaintiff status in securities class action

By Atlas Watchline Staff · Legal · August 31, 2026

Schall, Brown & Schwartz LLP says investors in Rackspace Technology may contact the firm about lead plaintiff status in a securities class action tied to alleged false and misleading statements.

Schall, Brown & Schwartz LLP says investors in Rackspace Technology may contact the firm about lead plaintiff status in a securities class action tied to alleged false and misleading statements.

Schall, Brown & Schwartz LLP said Aug. 31 that investors who bought Rackspace Technology Inc. shares during a May 7, 2026, to July 8, 2026, class period may seek appointment as lead plaintiff in a securities class action.

The firm said the lawsuit alleges Rackspace made false and misleading statements in violation of federal securities laws. The claims cited in the release include alleged violations of Section 10(b), Section 20(a) and SEC Rule 10b-5.

The release said lead plaintiff status can affect how the case proceeds, but an appointment is not required to share in any recovery. It also said the class has not yet been certified.

The press release said the complaint centers on Rackspace's enterprise AI business and alleges the company shifted investment and capacity away from its Private Cloud business. It also says Private Cloud revenue declined as customers moved to hyperscale platforms and that fiscal 2026 revenue would be significantly affected by those market challenges.

SBS said shareholders who purchased RXT shares during the class period are encouraged to contact the firm about possible lead plaintiff appointments. The release identified Brian Schall and David Schwartz as contacts at the firm.

The firm listed its Los Angeles office at 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, and said it can be reached by phone at 310-301-3335, through its website at www.schallfirm.com or by email at [email protected].

The release said absent class members may take no action and remain in the case unless they choose otherwise.

Sources

• PR Newswire release from Schall, Brown & Schwartz LLP, Aug. 31, 2026

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

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