Investors who purchased Rackspace Technology, Inc. securities between May 7, 2026 and July 8, 2026 have until Sept. 28, 2026 to seek appointment as lead plaintiff in a proposed securities class action 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, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Aug. 14 publicity from Bleichmar Fonti & Auld LLP, following Aug. 12 notices from Kaplan Fox & Kilsheimer LLP and Kirby McInerney LLP, says the suit claims Rackspace and certain senior executives misled investors about how its AI buildout, including an AMD memorandum of understanding, would affect capacity, Private Cloud growth and 2026 performance, while weakening Public Cloud trends and a likely pullback in its low-margin Public Cloud infrastructure resale business were not fully reflected in guidance. Rackspace later said AI investments required a significant re-prioritization of resources and a transition away from certain revenue-generating segments, cutting full-year 2026 revenue guidance by $150 million, lowering its Private Cloud outlook by $25 million and reducing its 2026 Public Cloud revenue estimate by $125 million; the shares fell $2.21, or 33.6%, to $4.37 on July 9, 2026.