Kaplan Fox & Kilsheimer LLP said it filed a securities class action against Rackspace Technology, Inc. on behalf of investors who purchased or otherwise acquired Rackspace securities between May 7, 2026, and July 8, 2026. The complaint alleges that Rackspace and its executives misrepresented the effect of enterprise AI initiatives on capital and capacity, while failing to disclose declining Public Cloud revenue and an expected reduction in the company’s Public Cloud infrastructure resale business. Investors may ask the court to appoint them as lead plaintiff by Sept. 28, 2026, although seeking that role is not required to participate in any potential recovery. Kaplan Fox said it focuses on complex litigation and has recovered more than $10 billion for clients and represented classes. The firm disclosed that the release may constitute attorney advertising in some jurisdictions and that past results do not guarantee future outcomes.