NEW YORK (Legal Newsline) — A pension fund has filed a class action lawsuit against a company and its board members, alleging violation of federal law.
The city of Warwick Municipal Employees Pension Fund filed a complaint, individually and on behalf of all others similarly situated, May 10 in U.S. District Court for the Southern District of New York against Rackspace Hosting Inc. and board members William Taylor Rhodes and Karl Pichler, alleging they failed to disclose pertinent facts regarding the company.
According to the complaint, the plaintiff was damaged monetarily from purchasing stocks at artificially inflated prices because the defendants made false representations regarding the company to artificially inflate those prices.
The plaintiff seeks trial by jury, compensatory damages, all damages, court costs and counsel fees and all appropriate relief. They are represented by attorneys Christopher J. Keller, Francis McConville and Eric J. Belfi of Labaton Sucharow LLP in New York.
U.S. District Court for the Southern District of New York Case number 1:17-cv-03501-JFK