Publicly available records indicate that a class action lawsuit has been filed on behalf of investors in Rackspace Hosting (NYSE:RAX) in connection to alleged violations of securities laws by RAX. Fitapelli Kurta is interested in hearing from investors who have complaints regarding investments made in Rackspace Hosting between between November 11 2014 and August 10, 2015.
The class action complaint specifically alleges that during the period in question, RAX might have provided false and/or misleading material information, and/or failed to disclose adverse material information to the public, chiefly: that Vodafone began migrating its data out of RAX’s servers, suggesting it would find a new storage provider when its contract with Rackspace concluded on April 1, 2015; that if RAX failed to renew its contract with Vodafone, it would suffer a substantial impact financially in the short term; and that consequently the company had no reasonable basis to make positive public statements about itself and its prospects for growth. When a sequence of disclosures regarding Vodafone’s non-renewal began in May 2015, RAX shares declined from a high of almost $56/share on April 27, 2015 to an August 11, 2015 close of $29.24/share, causing harm to investors.
According to the company’s website, Rackspace is a cloud services and infrastructure provider. The company’s description states: “Lots of companies will rent you access to their raw computing infrastructure. But your cloud doesn’t operate on infrastructure alone. It takes a wide variety of specialized engineering skills to architect and manage not only the infrastructure, but also the many complex tools and applications that run on top of it, including the latest data engines and ecommerce platforms. With other providers, that’s your responsibility. But we do things differently at Rackspace. We are the number one managed cloud company. Everything we offer is managed.”
A class action lawsuit has already been filed in connection with Rackspace Hosting. If you wish to serve as lead plaintiff in the RAX lawsuit, you must move the Court no later than July 10, 2017. If you wish to join the litigation, please contact Marc Fitapelli at 212-658-1501 or Jonathan Kurta at 212-658-1502. There is no cost or obligation to you and your ability to share in any recovery does not require that you serve as a lead plaintiff.