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RXT Lawsuit Alert: Rackspace Technology Investors Face September 28 Deadline After 33% Stock Drop Tied to AI Effort Issues

$RXTPress releaseSep 8, 2026, 6:06 AM ETRead the release

Bleichmar Fonti & Auld LLP announced a securities fraud class action against Rackspace Technology and certain senior executives, pending in the U.S. District Court for the Southern District of New York as Morgan-Reed v. Rackspace Technology, Inc., No. 26-cv-6491.

Key figures

Guidance
FY2026 revenue guidance cut by $150 million and FY2026 Private Cloud revenue outlook cut by $25 million (disclosed July 9, 2026, per the complaint allegations)
Court
U.S. District Court for the Southern District of New York
Case number
26-cv-6491
Stock drop pct
33.6%
Prior close usd
6.58
Post drop close usd
4.37
Stock drop per share
2.21
Lead plaintiff deadline
September 28, 2026
Private cloud outlook cut usd
25000000
Fy2026 revenue guidance cut usd
150000000

AI analysis

Red flags2 · Pro

The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.

AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.