STEVENSON, Md.--(BUSINESS WIRE)--The securities litigation law firm of Brower Piven, A Professional Corporation, announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of Rackspace Hosting, Inc. (NYSE: RAX) (“Rackspace” or the “Company”) securities during the period between November 11, 2014 and August 10, 2015, inclusive (the “Class Period”). Investors who wish to become proactively involved in the litigation have until July 10, 2017 to seek appointment as lead plaintiff.
If you wish to choose counsel to represent you and the class, you must apply to be appointed lead plaintiff and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement for the class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in Rackspace securities during the Class Period. Members of the class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. No class has yet been certified in the above action.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 by virtue of the defendants’ failure to disclose during the Class Period that: Vodafone Group Plc (“Vodafone”) had initiated extensive data migration away from Rackspace servers, signaling Vodafone’s intent to replace Rackspace with alternative providers on the contract’s April 1, 2015 expiration date; and, the failure to secure a renewal of the Vodafone contract would have a significant near-term financial impact on the Company’s 2015 recurring revenues.
According to the complaint, following a May 11, 2015 announcement of a weak sales outlook primarily due to the expiration of a contract from one of the Company’s largest customers, May 27, 2015 concerns raised by analysts during a conference call about the expiration of the contract with Vodafone, and an August 10, 2015 announcement lowering the revenue guidance, the value of Rackspace shares declined significantly.
If you have suffered a loss in excess of $100,000 from investment in Rackspace securities purchased on or after November 11, 2014 and held through the revelation of negative information during and/or at the end of the Class Period and would like to learn more about this lawsuit and your ability to participate as a lead plaintiff, without cost or obligation to you, please visit our website at http://www.browerpiven.com/currentsecuritiescases.html. You may also request more information by contacting Brower Piven either by email at email@example.com or by telephone at (410) 415-6616. Brower Piven also encourages anyone with information regarding the Company’s conduct during the period in question to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorneys at Brower Piven have extensive experience in litigating securities and other class action cases and have been advocating for the rights of shareholders since the 1980s. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.