RXT Investor Alert: Kessler Topaz Meltzer & Check, LLP Encourages RXT Investors with Losses to Contact the Firm

Rackspace Technology, Inc. (NASDAQ: RXT) is facing a securities fraud class action lawsuit filed on behalf of investors who purchased or acquired its securities between May 7, 2026, and July 8, 2026. The lawsuit alleges material misstatements and omissions concerning the company's enterprise AI efforts. Specifically, the complaint claims that Rackspace misrepresented its AI initiatives, leading to a significant re-prioritization of resources away from its profitable Private Cloud segment and a decline in Public Cloud revenue. This resulted in a substantial reduction in its Public Cloud infrastructure resale business and negatively impacted its fiscal year 2026 revenue. On July 9, 2026, Rackspace announced a strategic and financial update, revealing that its AI investments would require a significant resource re-prioritization and reducing its full-year 2026 revenue guidance by $150 million. The company also cut its full-year 2026 Private Cloud revenue outlook by $25 million, citing lower near-term margins due to upfront growth investment and restructuring. Following this news, Rackspace's stock price fell by 33.6%. Investors who purchased Rackspace securities during the specified period and incurred losses have until September 28, 2026, to file for lead plaintiff status.