SBS notifies investors about Rackspace securities class action
Schall, Brown & Schwartz LLP says a securities class action against Rackspace Technology alleges false and misleading statements during a May 7 to July 8, 2026 class period.
Schall, Brown & Schwartz LLP said Aug. 21 that it is notifying investors about a securities class action against Rackspace Technology Inc., the cloud services company listed on Nasdaq as RXT.
The notice concerns investors who bought Rackspace stock during the proposed class period from May 7, 2026, through July 8, 2026. SBS said investors who may have losses can contact the firm about a possible lead plaintiff role, and said that status is not required to share in any recovery if one is awarded.
According to the notice, the complaint alleges Rackspace violated federal securities laws, including Section 10(b), Section 20(a), and SEC Rule 10b-5 under the Securities Exchange Act of 1934. The filing says the company made false and misleading statements to the market.
The notice says the complaint centers on Rackspace's enterprise AI business and its effect on the company's Private Cloud operations. It alleges Rackspace shifted investment and capacity away from its Private Cloud business, that Private Cloud revenue fell as customers moved to hyperscale platforms, and that fiscal 2026 revenue would be affected by those market challenges.
SBS said the class has not yet been certified. It also said an investor who takes no action may remain an absent class member.
The notice was issued as an attorney advertisement and included contact details for Brian Schall and David Schwartz at Schall, Brown & Schwartz LLP in Los Angeles.
What happens next will depend on the court process, including whether the class is certified and whether an investor is appointed lead plaintiff.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
Comments ()