A securities class action has been filed against Rackspace Technology, Inc. on behalf of investors who purchased its securities between May 7 and July 8, 2026, inclusive. The lawsuit alleges that Rackspace failed to disclose that its enterprise AI efforts would require it to shift capacity and capital away from its profitable Private Cloud segment, while Public Cloud revenue was declining as customers contracted directly with hyperscale cloud platforms. The complaint claims Rackspace was consequently likely to reduce a material portion of its Public Cloud infrastructure resale business, significantly affecting fiscal 2026 revenue, and that the company’s public statements about its business, operations and prospects were misleading or lacked a reasonable basis. Investors must move the court by Sept. 28, 2026, to seek appointment as lead plaintiff. The proposed class has not been certified, and eligible investors may participate without seeking lead-plaintiff status or paying upfront fees and costs under a contingency-fee arrangement.