An investigation on behalf of investors of Rackspace Technology, Inc. (NASDAQ: RXT) shares over potential securities laws violations by Rackspace Technology, Inc. and certain of its directors and officers in connection with certain financial statements was announced.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Rackspace Technology, Inc. (NASDAQ: RXT) concerning whether a series of statements by Rackspace Technology, Inc. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
San Antonio, TX based Rackspace Technology, Inc. operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments.
On or around August 5, 2020, Rackspace Technology, Inc. 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 Technology, Inc. reported the Company's financial results for the first quarter of 2021 and issued a forecast for the second quarter and full year. Rackspace Technology, Inc. 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 Technology, Inc. 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.
Shares of Rackspace Technology, Inc. (NASDAQ: RXT) declined from $25.93 per share on April 20, 2021, to as low as $17.26 per share on May 11, 2021.