Investor Rights Notice: Rackspace shareholders who bought RXT between May 7 and July 8, 2026 may have the right to seek recovery of the $2.21 per share decline that followed the Company’s July 9, 2026 guidance reduction.

NEW YORK, Aug. 5, 2026 /PRNewswire/ — Levi & Korsinsky, LLP notifies investors in Rackspace Technology, Inc. (NASDAQ: RXT) that a securities class action has been filed on behalf of shareholders who purchased securities between May 7, 2026 and July 8, 2026. Submit your information. You may also contact Joseph E. Levi, Esq. at jlevi@levikorsinsky.com or (212) 363-7500.

RXT closed at $4.37 on July 9, 2026, down $2.21 or 33.6% in one session, after Rackspace reduced its full-year 2026 revenue outlook by $150 million and its EBITDA outlook by $20 million. Shares had traded as high as $7.53 on June 17, 2026. The deadline to seek appointment as lead plaintiff is September 28, 2026.

What Rights Purchasers of RXT Securities May Have

Investors who acquired Rackspace shares during the Class Period may hold claims under Section 10(b) and Section 20(a) of the Securities Exchange Act of 1934 and SEC Rule 10b-5. The action alleges that public statements about the Company’s full-year outlook omitted material facts about the planned redirection of capacity and capital toward enterprise AI. Class members retain these rights whether or not they still hold the stock.

• The right to seek compensation for losses on Class Period purchases, without payment of out-of-pocket fees.
• The right to apply for appointment as lead plaintiff and help direct the litigation on behalf of the class.
• The right to remain an absent class member and participate in any recovery without acting before the deadline.
• The right to a free review of trading records and an assessment of potential eligibility.
• The right to select counsel of the investor’s own choosing.

What the Action Alleges Was Omitted

Plaintiffs contend that investors were not told that the Company’s enterprise AI buildout would require a significant reprioritization of capacity and capital away from the higher-margin Private Cloud segment, which carried a 24.7% operating margin compared with 4.7% in Public Cloud. The action alleges that shareholders were also not informed that Public Cloud revenue was declining as customers moved to direct contracts with hyperscale platforms, making a reduction of a material portion of the infrastructure resale business likely. Full-year guidance was later cut by $25 million in Private Cloud and $125 million in Public Cloud, with revised total revenue of $2,450 million to $2,550 million implying a year-over-year decline.

“The timeline raises important questions about when certain risks were known internally versus when they were disclosed to the investing public. Investors are entitled to a clear understanding of the rights available to them before the lead plaintiff window closes.” — Joseph E. Levi, Esq.

Act now. Click here to learn more or call (212) 363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, 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 is eligible to join the RXT investor lawsuit? A: Investors who purchased RXT stock or securities between May 7, 2026 and July 8, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.

Q: What is the RXT lead plaintiff deadline? A: The deadline to apply for lead plaintiff appointment is September 28, 2026. This deadline applies only to investors seeking to serve as lead plaintiff. Class members who do not apply may still participate in any recovery without taking action before this date.

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.

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 do RXT investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at jlevi@levikorsinsky.com or (212) 363-7500. No immediate action is required to remain eligible as an absent class member.

Q: What if I already sold my RXT shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.

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 if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor’s country of residence.

CONTACT:
Levi & Korsinsky, LLP
Joseph E. Levi, Esq.
Ed Korsinsky, Esq.
33 Whitehall Street, 27th Floor
New York, NY 10004
jlevi@levikorsinsky.com
Tel: (212) 363-7500
Fax: (212) 363-7171

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