SBS notifies investors about Rackspace securities class action
Schall, Brown & Schwartz LLP says investors who bought Rackspace shares during the stated class period may contact the firm about the case.
Schall, Brown & Schwartz LLP says it is notifying investors about a class action lawsuit against Rackspace Technology, Inc. over alleged violations of federal securities laws during a class period the firm says ran from May 7, 2026, to July 8, 2026.
The firm says the complaint seeks to recover losses for shareholders who bought RXT shares during the stated period, but the class has not yet been certified.
In a press release published Aug. 24, 2026, the shareholder rights litigation firm said the case alleges violations of Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The release says the complaint accuses Rackspace of making false and misleading statements to the market.
According to the release, the complaint says Rackspace shifted investment and capacity away from its Private Cloud business and toward its enterprise AI business. The release also says Private Cloud revenue declined as customers moved to hyperscale platforms, and that fiscal 2026 revenue would be affected by those market challenges.
SBS said investors who purchased RXT shares during the class period may contact the firm about possible lead plaintiff appointment. The release says lead plaintiff status is not required to participate in any recovery. It also says investors are not represented by an attorney until the class is certified.
The notice identifies Schall, Brown & Schwartz LLP as a national shareholder rights litigation firm. It includes contact details for Brian Schall and David Schwartz, along with the firm’s Los Angeles office address, phone number, website and email.
The release did not include a court ruling, settlement or admission of wrongdoing by Rackspace.
Sources
Editorial note: This article was prepared with AI assistance and includes source attribution for reader review.
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