Latest / San Antonio News Today | 2 Min News | The Daily News Now!
Rackspace AI Claims Under Fire | San Antonio News
Rackspace Technology is under fire in a securities fraud lawsuit alleging it misled investors about its AI strategy—claiming AI deals with AMD were fueling growth, while secretly diverting resources from profitable business units. The fallout? Shares plummeted 30% in one day, triggering investor scrutiny. A class-action suit targets shareholders who bought stock between May 7 and July 8, though no guilt has been proven. Compounding the turmoil: Rackspace announced massive layoffs in June, cutting 750 employees (15% of its global workforce), signaling deep restructuring across the company…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.