RXT Shareholder Alert: September 28, 2026 Lead Plaintiff Deadline in Rackspace Technology, Inc. Securities Class Action - Contact SueWallSt

Two Rackspace executives, CEO Gajen Kandiah and CFO Mark Marino, are named individually in a securities class action alleging that reaffirmed FY2026 guidance concealed a planned shift of capacity and capital away from the Company's highest-margin segment.

NEW YORK, Aug. 11, 2026 (GLOBE NEWSWIRE) -- SueWallSt alerts investors in Rackspace Technology, Inc. (NASDAQ: RXT) of a pending securities class action on behalf of shareholders who purchased securities between May 7, 2026 and July 8, 2026. Find out if you could qualify to recover your per-share losses. You may also contact Joseph E. Levi, Esq. at jlevi@SueWallSt.com or (888) SueWallSt.

RXT shares fell $2.21 per share, or 33.6%, to close at $4.37 on July 9, 2026, after the Company reduced full-year 2026 revenue guidance by $150 million and its Adjusted EBITDA outlook by $20 million. The lead plaintiff deadline is September 28, 2026.

The Named Individual Defendants

The action names Chief Executive Officer Gajen Kandiah and Chief Financial Officer Mark Marino, each of whom served in those roles at all relevant times. Both are alleged to have possessed the authority to control the content of the Company's SEC reports, press releases, and presentations to analysts and institutional investors. The pleading asserts that each had access to material non-public information about the direction of the Company's Public Cloud and Private Cloud businesses.

Sarbanes-Oxley Certification Obligations

Under Sections 302 and 906 of the Sarbanes-Oxley Act, the chief executive and chief financial officers personally certify the accuracy and completeness of periodic SEC filings. The complaint charges that guidance reaffirmed during the Class Period lacked a reasonable basis given what was allegedly known internally about hyperscaler direct contracting and the planned reallocation of capacity toward enterprise AI.

Alleged Control Person Liability

• Section 20(a) of the Exchange Act permits claims against individuals alleged to have controlled a company that violated the securities laws.
• Public Cloud represented roughly 63% of 2025 revenue, making a $125 million cut to that segment a core-operations matter the complaint contends management would have known about.
• Private Cloud carried a 24.7% operating margin versus 4.7% for Public Cloud, and the pleading asserts the alleged capacity shift away from Private Cloud was material to margin.
• A workforce realignment terminating approximately 15% of global staff was approved on June 10, 2026, weeks before the guidance reduction.
• The Company estimated $14 million to $19 million in one-time realignment charges and $75 million to $85 million in annualized run-rate savings.
  
  

"Corporate officers have a duty to ensure their companies' public statements are accurate and complete. The complaint alleges that Rackspace's full-year 2026 outlook was reaffirmed while a $150 million revision was allegedly foreseeable to those certifying the filings." -- Joseph E. Levi, Esq.

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WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.

Frequently Asked Questions About the RXT Lawsuit

Q: Who are the defendants named in the RXT lawsuit? A: The complaint names Rackspace Technology, Inc. and individual defendants including senior executives Gajen Kandiah and Mark Marino.

Q: What specific misstatements does the RXT lawsuit allege? A: The complaint alleges Rackspace made materially false or misleading statements regarding its reaffirmed FY2026 revenue guidance and the strength of its Private Cloud and Public Cloud outlook during the Class Period. When the Company disclosed a $150 million revenue guidance reduction on July 9, 2026, the stock price declined sharply.

Q: How much did RXT stock drop? A: Shares fell approximately 33.6%, a decline of $2.21 per share, after the Company disclosed a $150 million cut to full-year 2026 revenue guidance tied to exiting colocation, basic hosting, and low-margin resale revenue. Investors who purchased during the Class Period at artificially inflated prices may be eligible to seek compensation.

Q: What court was the RXT class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.

Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.

Q: What documents do I need to to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.

Q: Do I need to go to court or give testimony? A: No. The overwhelming majority of class members never appear in court or give depositions. If there is a settlement or recovery, eligible class members generally submit a claim form to seek their portion.

Q: What does it cost me to participate? A: There is no upfront cost to submit your information and review whether you may be eligible to recover. Should you choose to participate in the securities class action, they are generally handled on a contingency basis, with any attorneys' fees and expenses subject to court approval.

CONTACT:

Levi & Korsinsky, LLP

Joseph E. Levi, Esq.

33 Whitehall Street, 27th Floor

New York, NY 10004

jlevi@SueWallSt.com

Tel: (888) SueWallSt

Fax: (212) 363-7171

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