NEW YORK, Aug. 30, 2016 /PRNewswire/ -- Nadeem Faruqi, founding partner at Faruqi & Faruqi, LLP, a leading national securities firm headquartered in New York City, is investigating the Board of Directors of Rackspace Hosting, Inc. ("Rackspace" or the "Company") (NYSE:RAX) for potential breaches of fiduciary duties in connection with the sale of the Company to Apollo Global Management, LLC for approximately $4.3 billion.
The Company's stockholders will only receive $32.00 in cash for each share of Rackspace common stock they own. However, this consideration is below Cowen and Company's price target of $38.00 per share announced on August 11, 2016 and Rackspace's 52-week high of $32.84 per share.
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The investigation focuses on whether Rackspace's Board of Directors breached their fiduciary duties to the Company's stockholders by failing to conduct a fair sales process and whether and by how much this proposed transaction undervalues the Company to the detriment of Rackspace's shareholders.
Faruqi & Faruqi, LLP is a national law firm which represents investors and individuals in class action litigation. The firm is focused on providing exemplary legal services in complex litigation in the areas of securities, shareholder, antitrust and consumer litigation, throughout all phases of litigation. The firm has an experienced trial team which has achieved significant victories on behalf of the firm's clients. To keep track of the latest securities litigation news, follow us on Twitter at www.twitter.com/MergerActivity or on Facebook at www.facebook.com/FaruqiLaw.
Faruqi & Faruqi, LLP is working together in this investigation with Juan E. Monteverde from Monteverde & Associates PC.
If you own common stock in Rackspace and wish to obtain additional information and protect your investments free of charge, please visit us at www.faruqilaw.com/RAX or contact Nadeem Faruqi, Esq. either via e-mail at [email protected] or by telephone at (877) 247-4292 or (212) 983-9330. You may also contact Juan E. Monteverde, Esq. either via email at [email protected] or by telephone at (212) 971-1341.
Faruqi & Faruqi, LLP
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Phone: (212) 983-9330
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