NEW YORK, May 17, 2017 /PRNewswire/ -- Attorney Advertising -- Bronstein, Gewirtz & Grossman, LLC notifies investors that a class action lawsuit has been filed against Rackspace Hosting, Inc. ("Rackspace" or the "Company") (NYSE: RAX) and certain of its officers, on behalf of shareholders who purchased Rackspace securities between November 11, 2014 and August 10, 2015, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: http://www.bgandg.com/rax.
This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements that: (1) 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 (2) the failure to assure a renewal of the Vodafone contract would have a large financial impact on the Rackspace's 2015 recurring revenues.
According to the complaint, following a May 11, 2015 announcement of a weak sales outlook largely due to the termination of a contract from one of Rackspace's largest customers, concerns regarding the expiration of the contract with Vodafone brought up by analysts on a May 27, 2015 conference call, and an August 10, 2015 revelation lowering the revenue guidance, Rackspace stock dropped significantly.
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint you can visit the firm's site: http://www.bgandg.com/rax or you may contact Peretz Bronstein, Esq. or his Investor Relations Analyst, Yael Hurwitz of Bronstein, Gewirtz & Grossman, LLC at 212-697-6484. If you suffered a loss in Rackspace you have until July 10, 2017 to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as a lead plaintiff.
Bronstein, Gewirtz & Grossman, LLC is a corporate litigation boutique. Our primary expertise is the aggressive pursuit of litigation claims on behalf of our clients. In addition to representing institutions and other investor plaintiffs in class action security litigation, the firm's expertise includes general corporate and commercial litigation, as well as securities arbitration. Attorney advertising. Prior results do not guarantee similar outcomes.
Bronstein, Gewirtz & Grossman, LLC
Peretz Bronstein or Yael Hurwitz
212-697-6484 | email@example.com
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