RXT LAWSUIT: Rackspace Technology Sued for Securities Fraud; Investors Should Contact Block & Leviton To Possibly Recover Losses

BOSTON, July 30, 2026 (GLOBE NEWSWIRE) -- Block & Leviton announces that a securities fraud lawsuit has been filed against Rackspace Technology (Nasdaq: RXT) and certain of its executives. Investors who have lost money in their Rackspace Technology investment should contact the firm to learn more about how they might recover those losses. For more details, visit https://blockleviton.com/cases/rxt.

What is this all about?

According to the complaint, Rackspace Technology and its executives misled investors about the company's full-year 2026 outlook during its shift toward AI infrastructure. The complaint alleges that between May 7 and July 8, 2026, the company reaffirmed its full-year revenue guidance and touted the strength of its Private Cloud and Public Cloud businesses, while allegedly failing to disclose that its AI pivot would divert capacity and capital away from its more profitable Private Cloud unit, that Public Cloud revenue was declining as customers contracted directly with hyperscalers, and that the company would materially shrink its Public Cloud resale business. On July 9, 2026, Rackspace cut its full-year 2026 revenue guidance by $150 million — citing an exit from low-margin resale operations and hyperscaler direct-contracting — and disclosed the news alongside a $250 million equity offering. On that news, the stock fell approximately 33.6% in a single day, to $4.37 per share.

Who is eligible?

Anyone who purchased or otherwise acquired Rackspace Technology securities between May 7, 2026, and July 8, 2026, may be eligible, whether or not they have sold their investment. Investors should contact Block & Leviton to learn more.

What should you do next?

The deadline to seek appointment as lead plaintiff is September 28, 2026. A class has not yet been certified, and until a certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member. If you've lost money on your investment, you should contact Block & Leviton to learn more via our case website, by email at shareholders@blockleviton.com, or by phone at (888) 256-2510.

Whistleblower?

If you have non-public information about Rackspace Technology, you should consider assisting in our investigation or working with our attorneys to file a report with the Securities Exchange Commission under their whistleblower program. Whistleblowers who provide original information to the SEC may receive rewards of up to 30% of any successful recovery. For more information, contact Block & Leviton at whistleblowers@blockleviton.com or by phone at (888) 256-2510.

Why should you contact Block & Leviton?

Block & Leviton is widely regarded as one of the leading securities class action firms in the country. Our attorneys have recovered billions of dollars for defrauded investors and are dedicated to obtaining significant recoveries on behalf of our clients through active litigation in the federal courts across the country. Many of the nation's top institutional investors hire us to represent their interests. You can learn more about us at our website, www.blockleviton.com, call (888) 256-2510 or email shareholders@blockleviton.com with any questions.

This notice may constitute attorney advertising.

CONTACT:
BLOCK & LEVITON LLP
260 Franklin St., Suite 1860
Boston, MA 02110
Phone: (888) 256-2510
Email: shareholders@blockleviton.com

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