Rackspace Technology investors have until September 28, 2026, to seek appointment as lead plaintiff in a securities fraud class action filed in the U.S. District Court for the Southern District of New York. The lawsuit, captioned Morgan-Reed v. Rackspace Technology, Inc., covers securities purchased or acquired from May 7 through July 8, 2026, inclusive, and alleges the company misrepresented or omitted material information about its enterprise AI strategy, Private Cloud and Public Cloud businesses, and fiscal 2026 outlook. Rackspace disclosed on July 9 that its AI investments would require a significant reprioritization of resources, cutting full-year 2026 revenue guidance by $150 million and its Private Cloud outlook by $25 million. Its shares fell $2.21, or 33.6%, to close at $4.37. Kessler Topaz Meltzer & Check is soliciting investors but did not file the complaint; investors may seek lead plaintiff status, retain counsel, remain absent class members or take no action.