RXT DEADLINE 9/28: Rackspace Technology Investors Should Contact Block & Leviton LLP

Boston, Massachusetts--(Newsfile Corp. - September 23, 2026) - Block & Leviton reminds investors 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.

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.