Rackspace Technology, Inc. Investors: September 28, 2026, Deadline in Securities Fraud Class Action Lawsuit

Kessler Topaz Meltzer & Check, LLP (www.ktmc.com ) , a nationally recognized securities litigation law firm, informs investors that a securities fraud class action lawsuit has been filed against Rackspace Technology, Inc. (Rackspace) (NASDAQ: RXT ) on behalf of those who purchased or acquired Rackspace securities between May 7, 2026 and July 8, 2026, inclusive.

The lawsuit is filed in the United States District Court for the Southern District of New York and is captioned Morgan-Reed v. Rackspace Technology, Inc. , No. 1:26-cv-06491 (S.D.N.Y.).

The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, and/or failed to disclose material adverse facts about the company's business, operations, and prospects.

Specifically, Defendants misrepresented and/or failed to disclose that: (1) Rackspace's enterprise AI efforts would require the company to significantly re-prioritize its capacity and capital away from the profitable Private Cloud segment; (2) Rackspace's Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms; (3) as a result, Rackspace was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business; (4) consequently, Rackspace's fiscal year 2026 revenue would be significantly impacted; and (5) as a result of the foregoing, Defendants' positive statements about the company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.

On July 9, 2026, before the market opened, Rackspace published its second quarter 2026 financial results and disclosed "a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack." Specifically, Rackspace revealed that its AI investments would require a significant re-prioritization of resources and, as a result, reduced its full year 2026 revenue guidance by $150 million.

Rackspace also cut its full year 2026 Private Cloud revenue outlook by $25 million and explained that "[l]ower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping."

On this news, Rackspace's stock price fell $2.21 per share, or 33.6%, to close at $4.37 per share on July 9, 2026.