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EQUITY ALERT: Rosen Law Firm Announces Filing of Securities Class Action Lawsuit Against Rackspace Hosting, Inc. - RAX

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NEW YORK, July 5, 2017 /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces the filing of a class action lawsuit on behalf of purchasers of Rackspace Hosting, Inc. securities (NYSE: RAX) from November 11 2014 through August 10, 2015, both dates inclusive (the "Class Period"). The lawsuit seeks to recover damages for Rackspace investors under the federal securities laws.

Rosen Law Firm, P.A. Logo

To join the Rackspace class action, go to http://www.rosenlegal.com/cases-1131.html or call Phillip Kim, Esq. or Kevin Chan, Esq. toll-free at 866-767-3653 or email pkim@rosenlegal.com or kchan@rosenlegal.com for information on the class action.

NO CLASS HAS YET BEEN CERTIFIED IN THE ABOVE ACTION. UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN ONE. YOU MAY ALSO REMAIN AN ABSENT CLASS MEMBER AND DO NOTHING AT THIS POINT. YOU MAY RETAIN COUNSEL OF YOUR CHOICE.

According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) 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; (2) the failure to secure a renewal of the Vodafone Contract would have a significant near-term financial impact on Rackspace's 2015 recurring revenues; and (3) as a result, defendants lacked a reasonable basis for their positive statements about Rackspace and its growth prospects.

Beginning in May 2015, a series of disclosures revealed the non-renewal of the Vodafone Contract and its substantial impact on Rackspace's financial performance and business prospects. In reaction to these revelations, shares of Rackspace 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, damaging investors.

A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 10, 2017. If you wish to join the litigation, go to http://www.rosenlegal.com/cases-1131.html or to discuss your rights or interests regarding this class action, please contact Phillip Kim or Kevin Chan of Rosen Law Firm toll free at 866-767-3653 or via email at pkim@rosenlegal.com or kchan@rosenlegal.com.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or on Twitter: https://twitter.com/rosen_firm.

Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Since 2014, Rosen Law Firm has been ranked #2 in the nation by Institutional Shareholder Services for the number of securities class action settlements annually obtained for investors.

Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      Kevin Chan, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 34th Floor
      New York, NY  10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      lrosen@rosenlegal.com
      pkim@rosenlegal.com
      kchan@rosenlegal.com
      www.rosenlegal.com

 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/equity-alert-rosen-law-firm-announces-filing-of-securities-class-action-lawsuit-against-rackspace-hosting-inc---rax-300483635.html

SOURCE Rosen Law Firm, P.A.

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