Rackspace Technology, Inc. (RXT)
Investigation
Bronstein, Gewirtz & Grossman, LLC is investigating potential claims on behalf of purchasers of Rackspace Technology, Inc. ("Rackspace" or "the Company") (NASDAQ: RXT). The investigation concerns whether Rackspace and certain of its officers and/or directors have violated federal securities laws.
On or around August 5, 2020, Rackspace conducted its initial public offering (“IPO”), selling 33.5 million shares of common stock priced at $21.00 per share. Then, on May 10, 2021, Rackspace reported the Company’s financial results for the first quarter of 2021 and issued a forecast for the second quarter and full year. Rackspace reported a first-quarter loss of $64 million, or $0.31 per share, compared with a loss of $48.2 million, or $0.29 per share. Rackspace also forecast adjusted second-quarter earnings of $0.21 to $0.23 per share on revenue of $735 million to $745 million, compared to analyst expectations of $0.23 per share on revenue of $733.9 million, and full-year adjusted earnings of $0.95 to $1.05 per share on revenue of $2.0 billion to $3.1 billion, compared to analyst forecasts of $1.01 per share on revenue of $3.02 billion. On this news, Rackspace’s stock price fell $5.01 per share, or 20.86%, to close at $19.01 per share on May 11, 2021.
If you are aware of any facts relating to this investigation, or purchased Rackspace shares, you can assist this investigation. You can also contact Peretz Bronstein or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC: 212-697-6484.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm’s expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
