City of Warwick Municipal Employees Pension Fund v. Rackspace Hosting, Inc.
Status: Ongoing Case
Labaton Sucharow is co-litigating on behalf of the plaintiffs, City of Warwick Municipal Employees Pension Fund (Warwick), against Rackspace Hosting, Inc. (NYSE: RAX), and certain of its senior executives (collectively, the defendants). The action asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (Exchange Act), and U.S. Securities and Exchange Commission (SEC) Rule 10b-5 promulgated thereunder, on behalf of all investors who purchased or otherwise acquired Rackspace common stock between November 11, 2014 and August 10, 2015, inclusive (the class period).
The complaint alleges 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 (Vodafone) and the attendant impact on the company’s profitability and growth prospects. Rackspace is a cloud computing company that provides data hosting and other related services to business customers around the world.
The case is City of Warwick Municipal Employees Pension Fund v. Rackspace Hosting, Inc., No. 17-cv-03501. Labaton Sucharow represents the plaintiffs as liaison counsel.