Rackspace Technology, Inc. (NASDAQ: RXT) Investor Alert: Lawsuit seeks to recover Investor losses

An investor, who purchased shares of Rackspace Technology, Inc. (NASDAQ: RXT), filed a lawsuit over alleged violations of Federal Securities Laws by Rackspace Technology, Inc. in connection with certain allegedly false and misleading statements.

Investors who purchased shares of Rackspace Technology, Inc. (NASDAQ: RXT) u have certain options and for certain investors are short and strict deadlines running. Deadline: September 28, 2026. NASDAQ: RXT investors should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

San Antonio, TX based Rackspace Technology, Inc. operates as a hybrid cloud and artificial intelligence solutions company in the United States, the United Kingdom, and internationally.

On July 9, 2026, before the market opened, Rackspace Technology, Inc. published second quarter 2026 financial results and "a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack." Rackspace Technology, Inc. allegedly 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 Technology, Inc. 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."

Shares of Rackspace Technology, Inc. (NASDAQ: RXT) declined from $8.60 per share on June 17, 2026, to as low as $3.87 per share on July 16, 2026.

The plaintiff claims that between May 7, 2026 and July 8, 2026, the defendants made false and/or misleading statements and/or failed to disclose that Rackspace's enterprise AI efforts would require Rackspace to significantly re-prioritize its capacity and capital away from the profitable Private Cloud segment, that Rackspace's Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms, that as a result, Rackspace was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business, and that as a result, Rackspace's fiscal year 2026 revenue would be significantly impacted.

Those who purchased shares of Rackspace Technology, Inc. (NASDAQ: RXT) have certain options and should contact the Shareholders Foundation.

Contact:
Michael Daniels
Shareholders Foundation, Inc.
3111 Camino Del Rio North
Suite 423
San Diego, CA 92108
Tel: +1-(858)-779-1554
E-Mail: mail@shareholdersfoundation.com

About Shareholders Foundation, Inc.
The Shareholders Foundation, Inc. is a professional portfolio monitoring and settlement claim filing service, and an investor advocacy group, which does research related to shareholder issues and informs investors of securities lawsuits, settlements, judgments, and other legal related news to the stock/financial market. Shareholders Foundation, Inc. is in contact with a large number of shareholders and offers help, support, and assistance for every shareholder. The Shareholders Foundation, Inc. is not a law firm. Referenced cases, investigations, and/or settlements are not filed/initiated/reached and/or are not related to Shareholders Foundation. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.

This release was published on openPR.