SBS alerts investors to Rackspace securities class action

Schall, Brown & Schwartz LLP said it is alerting investors to a securities class action against Rackspace Technology, Inc. in a PR Newswire notice dated Aug. 3, 2026.

The release said the lawsuit concerns Rackspace, which trades on Nasdaq under the ticker RXT, and covers a class period from May 7, 2026, to July 8, 2026. It said shareholders who bought RXT shares during that period may contact the firm about possible lead plaintiff appointment.

The notice said the complaint alleges Rackspace violated Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The firm said the class has not been certified.

According to the release, the complaint claims Rackspace made false and misleading statements to the market. It says those statements related to the company’s enterprise AI business, a shift in investment and capacity away from its Private Cloud business, and declining Private Cloud revenue as customers moved to hyperscale platforms.

The release also said the complaint alleges Rackspace’s fiscal 2026 revenue would be significantly affected by those market challenges. The notice said investors suffered damages when the market learned the truth about the company’s business outlook.

Schall, Brown & Schwartz said investors who do nothing may remain absent class members. It also said lead plaintiff appointment is not required to recover in the case.

The notice provided contact information for Brian Schall and David Schwartz at the firm’s Los Angeles office. It did not include a response from Rackspace in the release reviewed for this report.

What happens next depends on the lawsuit’s progress and whether a court certifies the class. The PR Newswire notice said interested shareholders may contact the firm about possible lead plaintiff appointments.

Sources

• PR Newswire release, Aug. 3, 2026

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