February 5, 2019 - The court granted the defendants' motion to dismiss.

December 18, 2017 - A motion to dismiss the amended complaint was filed.

November 3, 2017 - An amended complaint was filed.

May 11, 2017 (Shareholders Foundation) - An investor in shares of Rackspace Hosting, Inc. (NYSE:RAX) filed a lawsuit in the U.S. District Court for the Southern District of New York over alleged violations of Federal Securities Laws by Rackspace Hosting, Inc. in connection with certain allegedly false and misleading statements made between November 11, 2014 and August 10, 2015.

According to the complaint the plaintiff alleges on behalf of purchasers of Rackspace Hosting, Inc. (NYSE:RAX) common shares between November 11, 2014 and August 10, 2015, that the defendants violated Federal Securities Laws.
The plaintiff claims that the defendants violated provisions of the Exchange Act by issuing false and misleading statements regarding the impending loss of its contract with Vodafone Group Plc and the attendant impact on the Company’s profitability and growth prospects.
In August 2010, Rackspace announced that its Vodafone Group Plc Contract had been renewed for an additional five years.

More specifically, the plaintiff claims that between November 11, 2014 and August 10, 2015 the defendants’ statements pertaining to the Company’s profitability and growth prospects were materially false and misleading because Defendants failed to disclose that Vodafone Group Plc 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, that the failure to secure a renewal of the Vodafone Contract would have a significant near-term financial impact on the Company’s 2015 recurring revenues, and that as a result of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company and its growth prospects.
Beginning in May 2015, a series of disclosures exposed the non-renewal of the Vodafone Contract and its concomitant impact on Rackspace Hosting, Inc’s financial performance and business prospects. The plaintiff says that in reaction to these revelations, Rackspace Hosting, Inc. (NYSE:RAX) stock lost hundreds of millions of dollars in market capitalization, with the Company’s stock price falling from high of nearly $56 per share on April 27, 2015, to close at $29.24 per share on August 11, 2015.

On August 26, 2016, Rackspace Hosting, Inc. (NYSE:RAX) announced that it has entered into an agreement with affiliates of certain funds (the Apollo Funds ) managed by affiliates of Apollo Global Management, LLC (together with its consolidated subsidiaries, Apollo ) (NYSE: APO)to be acquired for$32.00 per share in cash.