San Diego, CA -- (SBWIRE) -- 05/15/2013 -- An investigation on behalf of investors of Rackspace Hosting, Inc. (NYSE:RAX) shares over potential securities laws violations by Rackspace and certain of its directors and officers in connection certain financial statements was announced.

Investors who purchased shares of Rackspace Hosting, Inc. (NYSE:RAX), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.

The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Rackspace Hosting, Inc. (NYSE:RAX) concerning whether a series of statements by Rackspace Hosting. regarding its business, its prospects and its operations were materially false and misleading at the time they were made.

Rackspace Hosting, Inc. (NYSE:RAX) reported that its annual Revenue rose from $628.99 million in 2009 to over $1.02 billion in 2011 and that its Net Income increased from $30.22 million in 2009 to $76.41 million in 2011.

For the first three quarters in 2012 Rackspace Hosting, Inc reported a combined 9 months Revenue of $956.34 million with a combined 9-months Net Income of $75.51 million.

Shares of Rackspace Hosting, Inc. (NYSE:RAX) grew from as low as $4.54 per share in January 2009 to as high as $78.93 per share in January 2013.

Then on February 12, 2013, after the market closed, Rackspace Hosting, Inc. announced financial results for the quarter ended December 31, 2012. Rackspace Hosting, Inc reported that its fourth quarter 2012 Revenue was $352.91 million with a fourth quarter Net Income of $29.91 million.

Shares of Rackspace Hosting, Inc. (NYSE:RAX) dropped from $$75.30 on February 12, 2013, to $59.778 per share on Feb. 13, 2013.

Then on May 8, 29013, Rackspace Hosting, Inc. reported its first quarter 2013 results.

Shares of Rackspace Hosting, Inc. dropped from over $52 per share on May 8, 2013, to $38.55 per share on May 9, 2013.

On May 14, 2013, NYSE:RAX shares closed at $42.80 per share, which is significantly below its current 52 week High.

Those who purchased shares of Rackspace Hosting, Inc. (NYSE:RAX), have certain options and should contact the Shareholders Foundation.

Contact:
Shareholders Foundation, Inc.
Jacob Rosenfeld
3111 Camino Del Rio North - Suite 423
92108 San Diego
Phone: +1-(858)-779-1554
Fax: +1-(858)-605-5739
mail@shareholdersfoundation.com