NEW YORK, Aug.  12, 2026  (GLOBE NEWSWIRE) -- Kirby McInerney LLP reminds investors who purchased Rackspace Technology, Inc. (&#34;Rackspace&#34; or the &#34;Company&#34;) (NASDAQ:RXT) securities to contact Lauren

RXT SHAREHOLDER ALERT: Securities Fraud Lawsuit Filed on Behalf of Rackspace Technology, Inc. Investors - Contact Kirby McInerney LLP by September 28, 2026

Rackspace Faces Securities Class Action Over AI Pivot and Revenue Outlook

NEW YORK, Aug. 12, 2026 (GLOBE NEWSWIRE) -- Kirby McInerney LLP reminds investors who purchased Rack...

<section class="insight" data-version="1">
  <section data-block="information">
    <h3>Information</h3>
    <p>NEW YORK, Aug.  12, 2026  (GLOBE NEWSWIRE) -- Kirby McInerney LLP reminds investors who purchased Rackspace Technology, Inc. (&amp;#34;Rackspace&amp;#34; or the &amp;#34;Company&amp;#34;) (NASDAQ:RXT) securities to contact Lauren</p>
  </section>

  <section data-block="ai-summary-paragraph">
    <h3>AI Summary</h3>
    <p>Rackspace faces a securities class action alleging misstatements about its AI pivot and 2026 revenue, tying to the May AMD partnership and a June workforce realignment. The company cut 2026 guidance amid AI investments and redirected capacity, triggering a stock decline. Lead plaintiff deadline is Sept 28, 2026, creating near-term litigation-driven risk.</p>
  </section>

  <section data-block="ai-summary-bullets">
    <h3>Key Points</h3>
    <ul><li>Class action targets Rackspace over AI pivot and 2026 revenue.</li><li>May 7 AMD AI cloud partnership cited; suit alleges misleading disclosures.</li><li>June 16 workforce reduction 15% and $75-85m run-rate savings.</li><li>July 9 Q2 results; full-year revenue guidance cut by $150m.</li><li>Lead plaintiff deadline Sept 28, 2026.</li></ul>
  </section>

  <section data-block="companies-mentioned">
    <h3>Companies Mentioned</h3>
    <ul><li><strong>Rackspace Technology, Inc. (RXT)</strong>: Subject of securities class action alleging misstatements about AI pivot and 2026 revenue; potential valuation impact.</li><li><strong>Kirby McInerney LLP (KMLLP)</strong>: Plaintiff law firm leading the investigation; signals litigation risk but no direct market impact.</li><li><strong>Advanced Micro Devices, Inc. (AMD)</strong>: May 7 AI cloud partnership cited in context of Rackspace pivot; potential long-term AI revenue implications.</li></ul>
  </section>

  <section data-block="category">
    <h3>Legal</h3>
    <p>Category: Legal. The piece centers on a securities class action targeting Rackspace, highlighting legal risk and potential costs that could influence valuation beyond near-term earnings.</p>
  </section>

  <section data-block="market-moving">
    <h3>Market-Moving</h3>
    <ul><li>Securities class action filing may cause near-term volatility if new facts emerge.</li><li>Lead plaintiff deadline Sept 28, 2026 could trigger trading moves.</li><li>Rackspace&#039;s AI pivot and margin trajectory remain key stock drivers.</li><li>AMD partnership tie-in adds ambiguity to near-term upside vs. litigation risk.</li></ul>
  </section>

  <section data-block="key-facts">
    <h3>Key Facts</h3>
    <ul><li>Class Period: May 7–July 8, 2026.</li><li>AMD announced enterprise AI cloud partnership on May 7, 2026.</li><li>June 16: 15% workforce reduction; $75–$85m annualized savings.</li><li>July 9: 2Q results; revenue guidance down by $150m.</li><li>Public Cloud revenue down $125m; Private Cloud down $25m.</li><li>Stock closed at $4.37, down 33.6%.</li><li>Lead plaintiff deadline is Sept 28, 2026.</li></ul>
  </section>

  <section data-block="trading-thesis">
    <h3>Trading Thesis</h3>
    <p>Near-term: neutral to mildly bearish due to litigation risk; longer-term depends on AI-pivot execution.</p>
  </section>
</section>


<link type="text/css" rel="stylesheet" href="https://www.globenewswire.com/styles/gnw_nitf.css"></link><p align="justify">NEW YORK, Aug.  12, 2026  (GLOBE NEWSWIRE) -- <a href="https://www.globenewswire.com/Tracker?data=NFMjc53JMcvS4u_nEn5AJMUwEj2eU1bG19Rg1vTlc7qQOuGC6Mut66DdbfPGd-N-uPXDofVe6gQqNAIsM40EfFRCQ5VpIFQvrmwdQgzcAe8=" rel="nofollow" target="_blank">Kirby McInerney LLP</a> reminds investors who purchased Rackspace Technology, Inc. ("Rackspace" or the "Company") (NASDAQ:<a class="ticker" href="https://www.benzinga.com/quote/RXT">RXT</a>) securities to contact <a href="https://www.globenewswire.com/Tracker?data=-sqNlFW0aBzOJ_uBZD_mfkbGOXk25O6fuz3uxbli0obayR_NODzDtbYi3iJUgh8aF79iZB3c3Na4zH9afkChMqVHIJvYULZG1Z6_BNiC-75zWRI5ifXLva_faawRXCNn" rel="nofollow" target="_blank">Lauren Molinaro</a> of Kirby McInerney LLP by email at <a href="https://www.globenewswire.com/Tracker?data=2NRq_neSmclErx05N-1_Fjc4R5po4eJPTkeoWFQbtgp6Pe2TY84VIdTcGfesgeeg2OlDxZRojdGl1Tw5ZA_sNy-3eTBG_FA3Ns4q-1u7xLqSY8UvmUsFMl6bSVikXd7c" rel="nofollow" target="_blank">investigations@kmllp.com</a>, or fill out the contact form below, to discuss your rights or interests in the securities fraud class action lawsuit at no cost.</p>  <p align="justify">If you suffered a loss on your Rackspace investments, you have until <strong>September 28, 2026</strong> to request lead plaintiff appointment. Courts do not consider lead plaintiff applications submitted after this deadline. The lead plaintiff oversees the litigation on behalf of the class and may influence key decisions, including litigation strategy and settlement. Courts regularly appoint individual investors as lead plaintiffs, not only institutions. Learn more about the lead plaintiff process and eligibility requirements <a href="https://www.globenewswire.com/Tracker?data=c23gWcx_3ysorJtuHzuWY0RsiqfQhzMleWS9NbTOFzO1zBhkLKnoFlXkji0Lh3WuanZTDJvZPe1R7xd3MB7XZORSTdcAKaxQBb3TF6fkoDY=" rel="nofollow" target="_blank">here</a>.</p>  <p align="justify">Follow the link below for more information about the lawsuit:</p>  <p align="center">[<a href="https://www.globenewswire.com/Tracker?data=TbCiEdAxmeicZvtpCdmQ5tO4I1nBEJsqpcHRwWIHdSzW-0KLbbRkV-hi86cHDvscQE-yS5jgBU_Bz6AEn_MqbRnaU_ySC49K93K0zb3NbkUL75M3tz5qch7_kgV4uv2QL-0djXqz9PlgYYPXj3UQ_eErHP5863q-j__B82g6JEzHgvLCzPveZiRoImYEr4Al" rel="nofollow" target="_blank">CONTACT THE FIRM IF YOU SUFFERED A LOSS</a>]</p>  <p align="justify"><strong>What Is The Lawsuit About?</strong></p>  <p align="justify">The lawsuit has been filed on behalf of investors who purchased securities during the period of May 7, 2026 and July 8, 2026, inclusive ("the Class Period"). The lawsuit alleges that Rackspace made materially false and/or misleading statements and failed to disclose material adverse facts about the Company’s business, operations, and prospects as it failed to disclose to investors that (i) the Company’s enterprise AI efforts would require Rackspace to significantly re-prioritize its capacity and capital away from the profitable Private Cloud segment; (ii) Rackspace’s Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms; (iii) as a result, Rackspace was likely to significantly reduce a material portion of its Public Cloud infrastructure resale business; and (iv) as a result, the Company’s fiscal year 2026 revenue would be significantly impacted.</p>  <p align="justify">On May 7, 2026, Rackspace announced a partnership with AMD to create an enterprise AI cloud The same day, the Company reaffirmed the fiscal 2026 guidance that had been provided in February and held an earnings call where management described Rackspace’s growth and readiness for its new AI pivot, as well as purported details of the mechanics of the AMD deal.</p>  <p align="justify">On June 16, 2026, the Company announcing a workforce realignment plan "intended to accelerate the Company’s strategic transformation as the operator for governed enterprise AI" whereby the Company said it expected to realize "$75 million to $85 million in annualized run-rate savings compared to current expense levels." This plan included a 15% reduction in workforce.</p>  <p align="justify">On July 9, 2026, Rackspace published its second quarter 2026 financial results and "a strategic and financial update on its transition to becoming the operator of the full enterprise AI stack" and held an earnings call to discuss results. The Company revealed that its AI investments would require a significant re-prioritization of resources, reduced its full year 2026 revenue guidance by $150 million, and reduced its full year 2026 Private Cloud revenue outlook by $25 million, "given the low-margin nature of the exited revenues across both business units and investments in AI compute capacity." Management further explained that the reduced guidance was in part due to the decision to "redeploy [] capacity and capital towards higher-yielding AI deployments." Management also stated that "We are reducing our public cloud revenue estimate for 2026 by $125 million, driven by this decision to exit low-margin public cloud infrastructure resale revenue and a continuation of the trend of hyperscaler direct contracting." Finally, the Company explained that "[l]ower near-term margins reflect upfront growth investment and restructuring, ahead of AI revenue ramping." On this news, Rackspace’s stock price fell $2.21, or 33.6%, to close at $4.37 per share on July 9, 2026.</p>  <p align="center">[<a href="https://www.globenewswire.com/Tracker?data=gq0V0VNfnolTm3xUlegpJc5QIANXdi47TlUBI0XiixaV_y41_sfsSL0mlLH3hKHmGoySYh8pRf9fPBsmQ0VAl8YE4u77L-Chtdwv7u_s6QxoH8iCbsbr_k66j_hPYL-sA8Am9P7AdAHQYi_gQNg77pL_ki7t8y2ZU8VMZbTVuGww1nigPDym33yyfWq1iTuT" rel="nofollow" target="_blank">CLICK HERE TO LEARN MORE ABOUT THE CLASS ACTION</a>]</p>  <p align="justify"><strong>What Should I Do?</strong></p>  <p align="justify">If you purchased or otherwise acquired Rackspace securities, have information, or would like to learn more about this investigation, please contact <a href="https://www.globenewswire.com/Tracker?data=-sqNlFW0aBzOJ_uBZD_mfnRJjJf3WXiHz9nCJBWuhMLU3D6mYonANaiUzY-wqDv2ZudROLwn9YpR75ukJlHeEniLtsIN4S4OIkLKAuDPZvW-iYo7eBgBC1zui7ZOJZXD" rel="nofollow" target="_blank">Lauren Molinaro</a> of <a href="https://www.globenewswire.com/Tracker?data=NFMjc53JMcvS4u_nEn5AJG8O0_w5h7jW51yCL975jgItuHNgonErAR-GsvrUTL958zXg_COJlUSh0VzcwSX2DYqDCOlz6yljQisiNuIzcWs=" rel="nofollow" target="_blank">Kirby McInerney LLP</a> by email at <a href="https://www.globenewswire.com/Tracker?data=2NRq_neSmclErx05N-1_Fjc4R5po4eJPTkeoWFQbtgr5sMgkdI8vHJChC2TxS_j_mQZZwgNaFxbkOJ7CFqQzr-2x5bKxdCTnw6x7tAeSX9-FYJvlUEFS-0Wwiz8nu5I5" rel="nofollow" target="_blank">investigations@kmllp.com</a>, or fill out the contact form below, to discuss your rights or interests with respect to these matters at no cost.</p>  <p align="center"><a href="https://www.globenewswire.com/Tracker?data=6Pd1Dvy9srmcAlk-hPEPCqJ3OApad_MPjF15gFdFnGSi2q2xt6xHqAnV60ftMFjEzUZvxVWs3btoPXeSkU5UeGneP1trh-YoUPMxeRmICd66Wnd-4n774fonJSOWw4Qe" rel="nofollow" target="_blank">[HOW CAN I PROTECT MY RIGHTS?]</a></p>  <p align="justify"><a href="https://www.globenewswire.com/Tracker?data=NFMjc53JMcvS4u_nEn5AJMUwEj2eU1bG19Rg1vTlc7obwAgT1eLXEoFFXXjBL2LmuWVDCpfsQbbVMnbraT6wAf2rykdgP3dtj5UxyGh-zcw=" rel="nofollow" target="_blank">Kirby McInerney LLP</a> is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, whistleblower, and consumer litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney LLP’s <a href="https://www.globenewswire.com/Tracker?data=YNOQOS05IzKLMc8wxmjhHz6zmRtFjbHikBHOkKM72YqbptPBMIQGD_BIZ1JM28S9yFShnLZa3_z6mHkAKbDl-g==" rel="nofollow" target="_blank">website</a>.</p>  <p align="justify">This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.</p>  <p align="justify">Contacts<br></br>Kirby McInerney LLP<br></br>Lauren Molinaro, Esq.<br></br>212-699-1171<br></br><a href="https://www.globenewswire.com/Tracker?data=Rql1Nxyy9gVit_X4AsmogTFVZL3k-rSGByBNUUGk9Kct_FZVdHu0qlf1xl0EFw2c4yy0mLGEgN4FwBZx9M9yBDnV1xw8EwSgf6o0AO8Rypg=" rel="nofollow" target="_blank">https://www.kmllp.com</a><br></br><a href="https://www.globenewswire.com/Tracker?data=Rql1Nxyy9gVit_X4AsmogdbEDjqFNEwRQQq5Sxup1ziQVMCQwLo_CUH3TShHHDa_BL0ajaIrPqc_q-x3G1SWgXdJTSONWD96xu2h2ZjLwnX6HHQKrltNkElnAuqkiG3_URmFA_BT0XT0qXZXiL4HMg==" rel="nofollow" target="_blank">https://securitiesleadplaintiff.com/</a><br></br><a href="https://www.globenewswire.com/Tracker?data=2NRq_neSmclErx05N-1_Fjc4R5po4eJPTkeoWFQbtgp0V3qAq3YSs309dLkKCA9Ihx3A-Zw48cM_tS8kQBZiZx1GEaPPOoeDsFuRuQHGi_L_SEoAHmN-eifxv3lzoRVF" rel="nofollow" target="_blank">investigations@kmllp.com</a></p> <img alt="" class="__GNW8366DE3E__IMG" src="https://www.globenewswire.com/newsroom/ti?nf=OTgwOTE4NCM3Nzc0MDUwIzIwMjA2Njk="></img> <br></br><img alt="" src="https://ml.globenewswire.com/media/YjM5MTgwMzktYzE5Zi00Y2EzLTgzZmUtNjA0OTY4ZTgxMmFlLTEwMzE5OTctMjAyNi0wOC0xMy1lbg==/tiny/Kirby-McInerney-LLP.png" referrerpolicy="no-referrer-when-downgrade"></img><p><a href="https://www.globenewswire.com/NewsRoom/AttachmentNg/192da1d1-643f-4eee-b850-dde5b9f2b00f"><img src="https://ml.globenewswire.com/media/192da1d1-643f-4eee-b850-dde5b9f2b00f/small/linkedin-logo-300x300-png.png" border="0" width="147" height="147" alt="Primary Logo"></img></a></p>

Rackspace faces a securities class action alleging misstatements about its AI pivot and 2026 revenue, tying to the May AMD partnership and a June workforce realignment. The company cut 2026 guidance amid AI investments and redirected capacity, triggering a stock decline. Lead plaintiff deadline is Sept 28, 2026, creating near-term litigation-driven risk.

News insight

RXT SHAREHOLDER ALERT: Securities Fraud Lawsuit Filed on Behalf of Rackspace Technology, Inc. Investors - Contact Kirby McInerney LLP by September 28, 2026

AI summary

Sentiment rationale

Key facts

Legal