SBS says Rackspace investors may seek lead plaintiff in securities suit

Schall, Brown & Schwartz LLP says investors in Rackspace Technology shares may contact the firm about lead plaintiff status in a securities class action tied to alleged disclosures about the company’s enterprise AI business and Private Cloud revenue.

Schall, Brown & Schwartz LLP said Aug. 13 that it is seeking a lead plaintiff in a securities class action against Rackspace Technology, Inc. over alleged false and misleading statements about the company’s enterprise AI business, Private Cloud revenue and fiscal 2026 revenue outlook.

The firm said the proposed class period runs from May 7, 2026, to July 8, 2026. It said shareholders who bought Rackspace stock during that period may contact the firm about possible lead plaintiff appointment.

The release says the lawsuit claims Rackspace’s public statements were misleading and that investors suffered damages when the truth emerged. It also says lead plaintiff status is not required to recover in any eventual settlement or judgment, and that the case has not yet been certified.

According to the release, the complaint summary alleges Rackspace shifted investment and capacity toward its enterprise AI business and 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 pressures.

The release says the alleged legal basis includes Section 10(b), Section 20(a) and SEC Rule 10b-5 under the Securities Exchange Act of 1934. It identifies Schall, Brown & Schwartz as a national shareholder rights litigation firm.

The firm’s release lists Brian Schall and David Schwartz as contacts at Schall, Brown & Schwartz LLP in Los Angeles, along with a phone number, website and email address. The release also says it may be considered attorney advertising in some jurisdictions.

What happens next is not clear from the release. It says investors in the stated class period may contact the firm regarding lead plaintiff consideration, while the lawsuit itself has not been certified.

Sources

• PR Newswire release: “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.