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NEW YORK, May 18, 2021 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rackspace Technology, Inc. ("Rackspace" or the "Company") (NASDAQ: RXT) Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 7980.
The investigation concerns whether Rackspace and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
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.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP