San Antonio's Rackspace faces stock drop, online complaints after 'security incident' shuts down email

Some customers whom the company migrated to a new email platform are complaining on social media that they're unable to restore inboxes, according to one report.

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click to enlarge Employees meet inside Rackspace's corporate headquarters. - Courtesy Photo / Rackspace
Courtesy Photo / Rackspace
Employees meet inside Rackspace's corporate headquarters.
San Antonio-based tech firm Rackspace Technology Inc. is grappling with online outrage and a drop in share price over a "security incident" that it blamed for customers being unable to send or receive emails.

Over the weekend, the cloud computing company disclosed that the incident had disrupted email for thousands of customers. So far, it hasn't offered details about the security issue.

As of 10 a.m. Monday, Rackspace shares were down nearly 10%, trading at $4.38 a share. What's more, tech blog The Register reports that some customers whom the company migrated to a new email platform now complain on social media that they're unable to restore inboxes.

In an online statement, Rackspace said it's restored email services to "thousands of customers" using Microsoft 365. It also said it's contacting affected customers by phone and through alternate email addresses.

"We continue to make progress on restoring email service to every affected customer," the company said. "At this time, moving to Microsoft 365 is the best solution for customers who can now also implement temporary forwarding."

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