Rackspace Technology faces federal securities fraud investigation

1 min read | Published on 11 Jul 2026, 03:36 AM |Updated on 19 Jul 2026, 08:49 AM

Reviewed by

Riya DScanX News Team

Key Highlights

Rackspace Technology, Inc. is facing investigations from Glancy Prongay Wolke & Rotter LLP and The Schall Law Firm regarding potential federal securities law violations. The inquiries follow a 33.6% drop in stock price on July 9, 2026, after the company lowered its 2026 revenue and EBITDA outlook to prioritize its enterprise AI business.

*this image is generated using AI for illustrative purposes only.

Rackspace Technology, Inc. faces investigations from multiple law firms concerning possible violations of federal securities laws. Glancy Prongay Wolke & Rotter LLP and The Schall Law Firm announced separate probes on behalf of investors regarding whether the company or its officers issued false or misleading statements. This legal scrutiny follows a significant decline in the company's stock price after it revised its financial guidance.

On July 9, 2026, Rackspace released preliminary second quarter 2026 financial results and lowered its 2026 outlook. The company cited a transition away from low-margin engagements to its enterprise AI business as the reason for the adjustment. This announcement led to a sharp decline in investor confidence.

Following the news, Rackspace’s stock price fell $2.21, or 33.6%, to close at $4.37 per share on July 9, 2026. The drop in share price has reportedly injured investors who purchased the company's securities. The law firms are urging affected shareholders to come forward to discuss their legal rights and potential recovery options.

Revised Financial Outlook

The company updated its financial projections for 2026, reducing both revenue and EBITDA estimates. The table below compares the prior guidance with the new midpoint estimates provided by the company.

Metric	Prior Midpoint	New Midpoint
Revenue	$2.65B	$2.5B
EBITDA	$310M	$290M

Glancy Prongay Wolke & Rotter LLP and The Schall Law Firm are investigating whether Rackspace Technology failed to disclose material information regarding its business transition and financial health. Investors who purchased Rackspace securities and suffered losses are encouraged to contact the firms to participate in the investigation or learn more about their rights.

What is the projected timeline for Rackspace to fully transition away from low-margin engagements to its enterprise AI business?

How will the reduction in revenue and EBITDA estimates impact Rackspace's ability to secure financing for its AI initiatives?

What potential legal liabilities or settlements could Rackspace face if the investigations find evidence of securities law violations?

Rackspace Technology receives UK Defence ERS Gold Award

1 min read | Published on 15 Jul 2026, 05:55 PM |Updated on 15 Jul 2026, 05:55 PM

Reviewed by

Shriram SScanX News Team

Add as a preferred
source on Google

Key Highlights

Rackspace Technology has been awarded the UK Defence Employer Recognition Scheme (ERS) Gold Award, the highest level of recognition under the Ministry of Defence scheme, for its exceptional support to the armed forces community. The company previously received the Silver ERS Award in 2025 and has now progressed to the Gold level.

*this image is generated using AI for illustrative purposes only.

Rackspace Technology has been awarded the UK Defence Employer Recognition Scheme (ERS) Gold Award, the highest level of recognition under the Ministry of Defence scheme, for its exceptional support to the armed forces community. The award recognises employers who have gone beyond UK Armed Forces Covenant commitments to embed supportive employee policies, promote defence values and advocate for service personnel in the civilian workforce.

The company previously received the Silver ERS Award in 2025 and has now progressed to the Gold level. Rackspace Technology's policies include paid leave for reservist training and mobilisation, active veteran recruitment and retention policies, flexible support for military families, and visible leadership endorsement of the Armed Forces Covenant.

"Rackspace Technology is proud to support those who serve or have served in the Armed Forces and their families," said Victoria Driscoll, Senior Director, Strategic Accounts, Rackspace Technology. "We are committed to ensuring our employee policies support active reservists, veterans and military families from recruitment through every stage of their careers."

Key Policies Supporting the Armed Forces

Rackspace Technology's recognition is based on its implementation of specific policies designed to support the armed forces community:

Policy Area	Description
Reservist Support	Paid leave for reservist training and mobilisation
Veteran Recruitment	Active veteran recruitment and retention policies
Family Support	Flexible support for military families
Leadership Endorsement	Visible leadership endorsement of the Armed Forces Covenant