NEW YORK, June 30, 2017 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Rackspace Hosting, Inc. ("Rackspace" or the "Company"). Such investors are advised to contact Robert S. Willoughby at firstname.lastname@example.org or 888-476-6529, ext. 9980.
The investigation concerns whether Rackspace and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 11, 2015, Rackspace reported its first quarter 2015 revenue and margins and issued a weak sales outlook. During an earnings call, the Company's Chief Executive Officer characterized the expiration of a lucrative contract with Vodafone Group Plc ("Vodafone") as "material" and "significant." On this news, Rackspace's share price fell $9.38, or 17.65%, over the following two trading days to close at $43.75 on May 13, 2015.
Then, on May 27, 2015, during an analyst conference call, the Company's Chief Financial Officer stated that Vodafone is "one of our largest customers in the Company and the largest one in our UK business" and acknowledged that the Company had "known about" the impending cancellation of its contract with Vodafone. On this news, Rackspace's share price fell $0.78, or 1.83%, to close at $41.86 on May 28, 2015.
Finally, on August 10, 2015, Rackspace lowered its 2015 revenue guidance to "just below $1.99 billion" citing "marketing and sales issues . . . and product challenges." On this news, Rackspace's share price fell $2.49, or 7.85%, to close at $29.24 on August 11, 2015.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, 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
SOURCE Pomerantz LLP