Important Shareholder Notice: Rackspace Technology Litigation Deadline Approaching Soon

Faruqi & Faruqi, LLP, a prominent national securities law firm, has issued an urgent reminder to investors of Rackspace Technology, Inc. (NASDAQ RXT) regarding an ongoing securities class action lawsuit. Investors who experienced losses during the defined class period—May 7, 2026, to July 8, 2026—are encouraged to take action before the critical deadline of September 28, 2026, for seeking lead plaintiff status.

The class action alleges significant violations of federal securities laws by Rackspace and its executives, pointing out misleading statements made that have adversely impacted shareholders. Notably, the lawsuit claims that the company failed to disclose the full ramifications of its enterprise AI strategies, which required a major reallocation of resources away from its historically profitable Private Cloud segment. Furthermore, evidence indicates a decline in Public Cloud revenue as customers increasingly shift to hyperscale cloud platforms, likely resulting in a substantial drop in Rackspace's Public Cloud infrastructure resale business. This situation is expected to have profound effects on the company's revenue projections for the fiscal year 2026.

On July 9, 2026, Rackspace made a public revelation regarding its second-quarter financial results, indicating adverse adjustments to its revenue guidance due to the required strategic shift towards becoming a full-scale operator of AI infrastructure. Specifically, the company announced a downward revision of its revenue by $150 million and a $25 million decrease in its Private Cloud revenue expectations. These public disclosures resulted in a significant slump in Rackspace's share price, plummeting by 33.6% in just one day—a stark reminder of the financial vulnerabilities investors face.

Faruqi & Faruqi strongly advises all shareholders who acquired Rackspace stock during the affected period to assess their trading activity and consult legal counsel regarding their rights and potential participation in the ongoing lawsuit, particularly regarding the possibility of becoming a lead plaintiff. Any interested party may seek to be the lead plaintiff, which involves representing the interests of the larger group of investors—provided they file their motions by the aforementioned deadline.

In addition, the firm invites any individuals with pertinent information concerning Rackspace's conduct—ranging from previous employees to whistleblowers—to come forward and connect with them. For further details surrounding the class action or legal rights, interested parties can visit the firm’s official website or contact Faruqi & Faruqi directly.

As a leading securities litigation firm with decades of experience, Faruqi & Faruqi has successfully recovered hundreds of millions of dollars for investors since its establishment in 1995. This ongoing case against Rackspace Technology serves as a crucial example of the potential legal recourse available to shareholders feeling the strain of corporate misstatements and governance failures. As the landscape of technology and investment continues to evolve, remaining aware and engaged with legal options is vital for investor protection and asset recovery.

For more information, visit Faruqi & Faruqi's website or call their office directly at the numbers provided.

This notice serves not only as a reminder of the approaching deadline but also highlights the firm’s commitment to providing a robust legal avenue for affected investors.

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