LOS ANGELES--(BUSINESS WIRE)--Goldberg Law PC, a national shareholder rights litigation firm, announces a class action lawsuit against Rackspace Hosting, Inc. (“Rackspace” or the “Company”) (NYSE: RAX) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s shares between November 11, 2014 and August 10, 2015, inclusive (the “Class Period”), are encouraged to contact the firm by July 10, 2017, the lead plaintiff motion deadline.
If you are a shareholder who suffered a loss during the Class Period, click here to participate.
We also encourage you to contact Michael Goldberg or Brian Schall, of Goldberg Law PC, 1999 Avenue of the Stars, Suite 1100, Los Angeles, CA 90067, at 800-977-7401, to discuss your rights free of charge. You can also reach us through the firm’s website at http://www.goldberglawpc.com/, or by email at firstname.lastname@example.org.
The class in this case has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
The Complaint alleges that during the Class Period, Rackspace issued false and misleading statements, and/or failed to disclose material information, regarding the impending loss of its contract with Vodafone Group Plc (“Vodafone”) and the attendant impact on the Company’s profitability and growth prospects. In August 2010, Rackspace announced that its Vodafone Contract had been renewed for an additional five years.
The Company repeatedly touted the profitability and growth of its international business, however failed to disclose that: Vodafone 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; that 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; and that as a result of the above, Rackspace lacked a reasonable basis for its positive statements about the Company and its growth prospects.
Beginning in May 2015, a series of disclosures exposed the non-renewal of the Vodafone Contract and its concomitant impact on the Company’s financial performance and business prospects. In reaction to these revelations, Rackspace stock lost hundreds of millions of dollars in market capitalization, which caused investors harm. The Company’s stock price fell from a Class Period high of nearly $56 per share on April 27, 2015, to close at $29.24 per share on August 11, 2015.
Goldberg Law PC represents investors around the world, and specializes in securities class action lawsuits and shareholder rights litigation.
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