{"success":true,"data":{"pressRelease":{"id":"125697","rtpr_id":"nGNX1msGx2","ticker":"RXT","exchange":"NASDAQ","all_tickers":["RXT"],"title":"Investor Reminder: Rackspace (NASDAQ:RXT) Investors are Encouraged to Contact BFA Law – Securities Fraud Lawsuit Pending Over AI Effort Issues","author":"Globe Newswire","published_at":"2026-08-24T10:46:00.224Z","article_body":"NEW YORK, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm\nBleichmar Fonti & Auld LLP\n(https://www.globenewswire.com/Tracker?data=joqQxGBJQaAJrkoBsZKwwjMSx8vVmF-mlNE_9uyeNTmouUhjIffnxzBXxfRbf7dSUqP5NCiaveh5s909OZxy23GrGvQ2t9m3TIVuShbYHu2-K6Z3TcT6aYNFvFmu_0BpGImQXHwikc0i-Rywzy_08Ein-1HMg23S7kWWBSWnUMw=)\nannounces that a class action lawsuit has been filed against Rackspace\nTechnology, Inc. (NASDAQ:RXT) and certain of the company’s senior executives\nfor securities fraud after its significant stock drop resulting from potential\nviolations of the federal securities laws.\n\nIf you invested in Rackspace, you are encouraged to obtain additional\ninformation by visiting:\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit.\n\nKey Details of the Rackspace ($RXT) Class Action:\n* Lead Plaintiff Deadline: September 28, 2026\n* Alleged Misconduct: Securities fraud alleging that Rackspace misled\ninvestors about its AI efforts and their impact on the company’s financial\nperformance\n* Stock Drop: July 9, 2026 – 33.6% Stock Drop\n* Court: U.S. District Court for the Southern District of New York\n* Action: Contact BFA Law\n(https://www.bfalaw.com/cases/rackspace-class-action-lawsuit) to discuss your\nrights\nInvestors have until September 28, 2026 to ask the Court to be appointed to\nlead the case. The complaint asserts securities fraud claims under Sections\n10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors\nin Rackspace securities. The class action is pending in the U.S. District\nCourt for the Southern District of New York. It is captioned Morgan-Reed v.\nRackspace Technology, Inc., No. 26-cv-6491.\n\nWhy is Rackspace Being Sued for Securities Fraud?\n\nRackspace is a hybrid cloud and AI solutions company that operates physical\ninfrastructure to host cloud services and artificial intelligence. The\ncompany also provides Rackspace AI, a portfolio of AI services to help\norganizations scale AI adoption.\n\nDuring the relevant period, the company announced it signed a memorandum of\nunderstanding with Advanced Micro Devices, Inc. (“AMD”) to assist in\nbuilding out its AI infrastructure and enhance its AI capabilities. That same\nday, the company reaffirmed its full year revenue guidance.\n\nRackspace told investors that the “AMD piece really fits into how” the\ncompany’s technology stack operates. Rackspace also stated that the AMD\npartnership “give[s] [the Company] confidence in the full year Private Cloud\ngrowth profile.”\n\nAs alleged, in truth, the company’s AI efforts would require Rackspace to\nsignificantly re-prioritize its capacity and pull capacity away from revenue\ngenerating segments.\n\nWhy did Rackspace’s Stock Drop?\n\nOn July 9, 2026, Rackspace revealed that its AI investments would require a\nsignificant re-prioritization of resources and a “transition away” from\ncertain revenue generating segments. As a result, Rackspace revealed it was\ncutting its full year 2026 revenue guidance by $150 million and its full year\nPrivate Cloud revenue outlook by $25 million.\n\nThis news caused the price of Rackspace stock to decline $2.21 per share, or\n33.6%, from a closing price of $6.58 per share on July 8, 2026, to $4.37 per\nshare on July 9, 2026.\n\nClick here for more information:\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit.\n\nWhat Can You Do?\n\nIf you invested in Rackspace, you may have legal options and are encouraged to\nsubmit your information to the firm.\n\nAll representation is on a contingency fee basis; there is no cost to you.\nShareholders are not responsible for any court costs or expenses of\nlitigation. The firm will seek court approval for any potential fees and\nexpenses.\n\nSubmit your information by visiting:\n\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit\n\nOr contact:\nAdam McCall\nadam@bfalaw.com\n212.789.3619\n\nWhy Bleichmar Fonti & Auld LLP?\n\nBFA is a leading international law firm representing plaintiffs in securities\nclass actions and shareholder litigation. It has been named a top plaintiff\nlaw firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have\nbeen named “Elite Trial Lawyers” by the National Law Journal,\n“Litigation Stars” by Benchmark Litigation, among the top “500 Leading\nPlaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’\nBar” by Law360 and “SuperLawyers” by Thomson Reuters.\n\nMost recently, The Legal 500 awarded BFA the most client satisfaction\naccolades of any plaintiff’s securities litigation law firm, with clients\nnoting: “[t]here is no better service provider in the practice area,”\n“[t]he interest of the client is always front and center,” and “[t]here\nisn’t a better firm in this space.” One testimonial described the firm as\n“nimble and entrepreneurial,” with a “relentless focus on adding value\nfor clients.”\n\nAmong its recent notable successes, BFA recovered over $900 million in value\nfrom Tesla, Inc.’s Board of Directors, as well as $420 million from Teva\nPharmaceutical Ind. Ltd.\n\nFor more information about BFA and its attorneys, please visit\nhttps://www.bfalaw.com.\n\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit\n\nAttorney advertising. Past results do not guarantee future outcomes.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/44a256cf-d470-4d8a-af6b-dbb1b5bbb11e)\n\n\n\nGlobeNewswire, Inc. 2026","article_body_html":"","raw_payload":{"data":{"id":"nGNX1msGx2","title":"Investor Reminder: Rackspace (NASDAQ:RXT) Investors are Encouraged to Contact BFA Law – Securities Fraud Lawsuit Pending Over AI Effort Issues","author":"Globe Newswire","ticker":"RXT","created":"2026-08-24T10:46:00.224Z","tickers":["RXT"],"exchange":"NASDAQ","article_body":"NEW YORK, Aug. 24, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm\nBleichmar Fonti & Auld LLP\n(https://www.globenewswire.com/Tracker?data=joqQxGBJQaAJrkoBsZKwwjMSx8vVmF-mlNE_9uyeNTmouUhjIffnxzBXxfRbf7dSUqP5NCiaveh5s909OZxy23GrGvQ2t9m3TIVuShbYHu2-K6Z3TcT6aYNFvFmu_0BpGImQXHwikc0i-Rywzy_08Ein-1HMg23S7kWWBSWnUMw=)\nannounces that a class action lawsuit has been filed against Rackspace\nTechnology, Inc. (NASDAQ:RXT) and certain of the company’s senior executives\nfor securities fraud after its significant stock drop resulting from potential\nviolations of the federal securities laws.\n\nIf you invested in Rackspace, you are encouraged to obtain additional\ninformation by visiting:\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit.\n\nKey Details of the Rackspace ($RXT) Class Action:\n* Lead Plaintiff Deadline: September 28, 2026\n* Alleged Misconduct: Securities fraud alleging that Rackspace misled\ninvestors about its AI efforts and their impact on the company’s financial\nperformance\n* Stock Drop: July 9, 2026 – 33.6% Stock Drop\n* Court: U.S. District Court for the Southern District of New York\n* Action: Contact BFA Law\n(https://www.bfalaw.com/cases/rackspace-class-action-lawsuit) to discuss your\nrights\nInvestors have until September 28, 2026 to ask the Court to be appointed to\nlead the case. The complaint asserts securities fraud claims under Sections\n10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors\nin Rackspace securities. The class action is pending in the U.S. District\nCourt for the Southern District of New York. It is captioned Morgan-Reed v.\nRackspace Technology, Inc., No. 26-cv-6491.\n\nWhy is Rackspace Being Sued for Securities Fraud?\n\nRackspace is a hybrid cloud and AI solutions company that operates physical\ninfrastructure to host cloud services and artificial intelligence. The\ncompany also provides Rackspace AI, a portfolio of AI services to help\norganizations scale AI adoption.\n\nDuring the relevant period, the company announced it signed a memorandum of\nunderstanding with Advanced Micro Devices, Inc. (“AMD”) to assist in\nbuilding out its AI infrastructure and enhance its AI capabilities. That same\nday, the company reaffirmed its full year revenue guidance.\n\nRackspace told investors that the “AMD piece really fits into how” the\ncompany’s technology stack operates. Rackspace also stated that the AMD\npartnership “give[s] [the Company] confidence in the full year Private Cloud\ngrowth profile.”\n\nAs alleged, in truth, the company’s AI efforts would require Rackspace to\nsignificantly re-prioritize its capacity and pull capacity away from revenue\ngenerating segments.\n\nWhy did Rackspace’s Stock Drop?\n\nOn July 9, 2026, Rackspace revealed that its AI investments would require a\nsignificant re-prioritization of resources and a “transition away” from\ncertain revenue generating segments. As a result, Rackspace revealed it was\ncutting its full year 2026 revenue guidance by $150 million and its full year\nPrivate Cloud revenue outlook by $25 million.\n\nThis news caused the price of Rackspace stock to decline $2.21 per share, or\n33.6%, from a closing price of $6.58 per share on July 8, 2026, to $4.37 per\nshare on July 9, 2026.\n\nClick here for more information:\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit.\n\nWhat Can You Do?\n\nIf you invested in Rackspace, you may have legal options and are encouraged to\nsubmit your information to the firm.\n\nAll representation is on a contingency fee basis; there is no cost to you.\nShareholders are not responsible for any court costs or expenses of\nlitigation. The firm will seek court approval for any potential fees and\nexpenses.\n\nSubmit your information by visiting:\n\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit\n\nOr contact:\nAdam McCall\nadam@bfalaw.com\n212.789.3619\n\nWhy Bleichmar Fonti & Auld LLP?\n\nBFA is a leading international law firm representing plaintiffs in securities\nclass actions and shareholder litigation. It has been named a top plaintiff\nlaw firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have\nbeen named “Elite Trial Lawyers” by the National Law Journal,\n“Litigation Stars” by Benchmark Litigation, among the top “500 Leading\nPlaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’\nBar” by Law360 and “SuperLawyers” by Thomson Reuters.\n\nMost recently, The Legal 500 awarded BFA the most client satisfaction\naccolades of any plaintiff’s securities litigation law firm, with clients\nnoting: “[t]here is no better service provider in the practice area,”\n“[t]he interest of the client is always front and center,” and “[t]here\nisn’t a better firm in this space.” One testimonial described the firm as\n“nimble and entrepreneurial,” with a “relentless focus on adding value\nfor clients.”\n\nAmong its recent notable successes, BFA recovered over $900 million in value\nfrom Tesla, Inc.’s Board of Directors, as well as $420 million from Teva\nPharmaceutical Ind. Ltd.\n\nFor more information about BFA and its attorneys, please visit\nhttps://www.bfalaw.com.\n\nhttps://www.bfalaw.com/cases/rackspace-class-action-lawsuit\n\nAttorney advertising. Past results do not guarantee future outcomes.\n\n(https://www.globenewswire.com/NewsRoom/AttachmentNg/44a256cf-d470-4d8a-af6b-dbb1b5bbb11e)\n\n\n\nGlobeNewswire, Inc. 2026"},"type":"article","timestamp":"2026-08-24T10:46:00.275751845Z","server_sent_at_ms":1787568360275},"received_at":"2026-08-24T10:46:00.333Z","source_url":null},"analysis":{"id":"114648","press_release_id":"125697","analysis_json":{"industry":{"label":"IT Services","sector":"Information Technology"},"redFlags":[],"eventType":"legal_litigation","narrative":"Bleichmar Fonti & Auld LLP announced a class action lawsuit against Rackspace Technology regarding alleged securities fraud connected to its AI initiatives.\n\nThe complaint alleges Rackspace misled investors about its AI capabilities and partnership with AMD, preceding a 33.6% stock drop and guidance cuts totaling $150 million in July 2026.\n\nThis release is a solicitation for lead plaintiffs; investors have until September 28, 2026 to seek appointment with the firm on a contingency basis.","sentiment":"neutral","agentHooks":{"shouldPost":false,"suggestedAngle":"Plaintiff-firm solicitation -- suppress."},"keyFigures":{"customDimensions":{"prior_price":"$6.58","closing_price":"$4.37","price_decline":"$2.21","stock_drop_percent":"33.6%","guidance_cut_revenue":"$150 million","guidance_cut_private_cloud":"$25 million"}},"quotedText":"Investors have until September 28, 2026 to ask the Court to be appointed to lead the case.","namedEntities":{"people":[{"name":"Adam McCall","role":"Contact"}],"products":["Rackspace AI"],"companies":[{"name":"Rackspace Technology, Inc.","ticker":"RXT","relationship":"target"},{"name":"Bleichmar Fonti & Auld LLP","relationship":"plaintiff law firm"},{"name":"Advanced Micro Devices, Inc.","ticker":"AMD","relationship":"mentioned partner"}],"dollarAmounts":[{"amount":"$150 million","context":"full year revenue guidance cut"},{"amount":"$25 million","context":"full year Private Cloud revenue outlook cut"},{"amount":"$2.21","context":"per-share price decline"},{"amount":"$6.58","context":"closing price July 8, 2026"},{"amount":"$4.37","context":"closing price July 9, 2026"}]},"materialImpact":{"score":1,"reasoning":"Plaintiff law-firm shareholder solicitation issued by Bleichmar Fonti & Auld LLP. No new disclosure from the issuer; no certified class or settlement. Boilerplate lead-plaintiff-deadline reminder."},"tickerRelevance":{"others":[{"ticker":"AMD","relevance":"mentioned"}],"primary":"RXT"},"globalImportance":15,"audienceRelevance":15,"eventTypeSecondary":[],"importanceComponents":{"tickerTier":"mid-cap","eventGravity":"law-firm-solicitation","issuerAuthored":false}},"event_type":"legal_litigation","event_type_secondary":null,"sentiment":"neutral","material_impact_score":1,"narrative":"Bleichmar Fonti & Auld LLP announced a class action lawsuit against Rackspace Technology regarding alleged securities fraud connected to its AI initiatives.\n\nThe complaint alleges Rackspace misled investors about its AI capabilities and partnership with AMD, preceding a 33.6% stock drop and guidance cuts totaling $150 million in July 2026.\n\nThis release is a solicitation for lead plaintiffs; investors have until September 28, 2026 to seek appointment with the firm on a contingency basis.","key_figures":{"customDimensions":{"prior_price":"$6.58","closing_price":"$4.37","price_decline":"$2.21","stock_drop_percent":"33.6%","guidance_cut_revenue":"$150 million","guidance_cut_private_cloud":"$25 million"}},"named_entities":{"people":[{"name":"Adam McCall","role":"Contact"}],"products":["Rackspace AI"],"companies":[{"name":"Rackspace Technology, Inc.","ticker":"RXT","relationship":"target"},{"name":"Bleichmar Fonti & Auld LLP","relationship":"plaintiff law firm"},{"name":"Advanced Micro Devices, Inc.","ticker":"AMD","relationship":"mentioned partner"}],"dollarAmounts":[{"amount":"$150 million","context":"full year revenue guidance cut"},{"amount":"$25 million","context":"full year Private Cloud revenue outlook cut"},{"amount":"$2.21","context":"per-share price decline"},{"amount":"$6.58","context":"closing price July 8, 2026"},{"amount":"$4.37","context":"closing price July 9, 2026"}]},"model_name":"glm-4.7","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-08-24T10:50:23.448Z","global_importance":15,"audience_relevance":15,"importance_components":{"tickerTier":"mid-cap","eventGravity":"law-firm-solicitation","issuerAuthored":false}},"durationMs":101330,"modelName":"glm-4.7"}}