Updated from 1:44 p.m. EDT

Shares of

Career Education

(CECO) - Get Report

fell 16.1% on heavy volume Friday after a law firm claimed it had 12 witnesses who would back up charges the company falsified student records and manipulated financial statements.

The company issued a press release saying that it has reviewed a copy of the amended complaint filed by Goodkind Labaton Rudoff & Sucharow LLP and said, "The company continues to believe the complaint is without merit," and "individuals named in the complaint will vigorously defend themselves against it."

Shares of Career Education traded down $10.79 to $56.24 on volume of 31.5 million shares.

Red Hat

(RHAT)

fell 10.2% on active volume after the Linux vendor delivered mixed first-quarter results and warned that second-quarter sales would fall short of expectations. Red Hat earned 5 cents a share on sales of $41.6 million in the first quarter. Analysts polled by Thomson First Call were expecting the company to earn 4 cents a share on sales of $43 million.

Looking ahead, Red Hat expects to earn 5 cents a share in the second quarter on sales of $47.5 million to $48.1 million. Analysts are expecting the company to earn 5 cents a share on sales of $48.7 million. Shares of Red Hat were recently trading down $2.29 to $20.10 on volume of 30.2 million shares.

Shares of

Solectron

(SLR)

rallied Friday after the contract manufacturer delivered solid third-quarter earnings and said that it would deliver better-than-expected results during the fourth quarter. Excluding items, Solectron earned 1 cent a share during the third quarter on sales of $3.04 billion. Analysts were looking for the company to report break-even earnings on sales of $3.05 billion. Looking ahead, Solectron said that it would earn 3 cents to 5 cents a share during the fourth quarter on sales of $3.05 billion to $3.2 billion. Analysts had been expecting Solectron to earn 2 cents a share on sales of $3.18 billion. Shares of Solectron traded up 64 cents, or 12.6%, to $5.72 on volume of 20.7 million shares.

In addition to Solectron,

NYSE

volume leaders included

Nortel

(NT)

, up 4 cents to $4.44;

General Electric

(GE) - Get Report

, up 22 cents to $32.58;

Lucent

(LU)

, down 2 cents to $3.47; and

Motorola

(MOT)

, down 75 cents to $17.34.

In addition to Career Education and Red Hat,

Nasdaq

volume leaders included

Microsoft

(MSFT) - Get Report

, up 58 cents to $28.35;

Cisco

(CSCO) - Get Report

, up 6 cents to $23.42;

Oracle

(ORCL) - Get Report

, unchanged at $11.14; and

Intel

(INTC) - Get Report

up 1 cent to $27.64.

Among notable Nasdaq price movers,

Blackboard

(BBBB)

vaulted on its first day of trading. The education software maker priced 5.5 million shares at $14, raising $77 million. CS First Boston acted as lead underwriter. Shares of Blackboard traded up $6.01, or 42.9%, to $20.01.

Shares of

American Healthways

(AMHC)

rose after the company reported in-line third-quarter earnings and sales and said fourth-quarter earnings would be better than expected. The Nashville, Tenn.-based company said that earnings, excluding items, were 19 cents a share during the third quarter on sales of $65.4 million. Analysts were looking for the company to earn 19 cents a share. Looking ahead, the company said that it now expects full-year earnings of 74 cents to 75 cents a share vs. previous estimates of 71 cents to 73 cents a share. Analysts had been expecting the company to earn 71 cents a share. Shares of American Healthways traded up $3.84, or 19%, to $24.09.

Progress Software

(PRGS) - Get Report

rose after the company announced solid second-quarter financial results. The company earned 21 cents a share on sales of $90.8 million, a 17% increase from the year-ago period. Progress Software's results were helped by a 36% jump in software license revenue, which climbed to $36.9 million. Shares of Progress Software traded up $2.27, or 11.7%, to $21.75.

Shares of

RF Monolithics

(RFMI)

slid after the company delivered strong third-quarter results but warned that its fourth-quarter results would not be as strong as its just-ended third-quarter results. During the third quarter it earned 9 cents a share on sales of 13.6 million. Looking ahead, however, the company said that it does "not expect to see the surge of activity we experienced within our third quarter and we are seeing automotive production schedules returning to normal levels. We expect fourth quarter sales to increase 11% to 16% over the prior year's fourth quarter, a decline of 5% to 9% from our strong third quarter sales." Shares of RF Monolithics traded down $1.95, or 18.1%, to $8.81.

After jumping more than 27% on Thursday, shares of

Supportsoft

(SPRT) - Get Report

took a breather on Friday. Thursday Supportsoft rose after the company announced an agreement with

BellSouth

(BLS)

for the development of software that will help automate BellSouth's next generation of wireless and wireline services, VoIP and bandwidth-on-demand products. The agreement represented an expansion of the relationship the two companies already have. Shares of Supportsoft traded down 52 cents, or 5.8%, to $8.48.

Central Freight Lines

(CENF)

slumped Friday after Bear Stearns downgraded shares to peer perform from outperform. The downgrade comes on the heels of a second-quarter profit warning that Central Freight issued on Thursday. Instead of earning 4 cents to 8 cents a share, as previously forecasted, the company now expects to report a loss of 20 cents to 25 cents a share, which excludes a one-time gain. Analysts had been expecting the company to report second-quarter earnings of 6 cents a share. Adding to the 31.8% loss yesterday, shares of Central Freight traded down 75 cents, or 8.8%, to $7.80.

On the Big Board, shares of

Gartner

(IT) - Get Report

rose after the company said its board approved a repurchase plan that would be conducted using a Dutch auction format. The company plans to repurchase up to 11.3 million shares of its class A stock and 5.5 million shares of class B stock for between $12.50 and $13.50 a share. If Gartner purchases the maximum amount of shares it would cost between $210 million and $227 million. Shares of Gartner's A shares closed at $12.19 on Thursday while its B shares closed at $11.95. Shares of Gartner's A class traded up 85 cents, or 7%, to $13.04. Its B shares traded up 84 cents, or 7%, to $12.79.

Shares of

Fremont General

(FMT)

slumped after the company said that the state of California Insurance Commissioner filed suit against the company for "improper utilization by the company of certain net operating loss deductions allegedly belonging to its Fremont Indemnity subsidiary." Fremont says the complaint involves issues that it believes were resolved in a letter of agreement dated July 2002. What's more, Fremont says it will vigorously defend itself and believes the complaint lacks merit. Shares of Fremont General traded down $2.84, or 13.8%, to $17.82.

AU Optronics

(AUO)

slid after the company raised $520 million in a stock offering. The company had originally expected to raise $726 million to $847 million but a weaker outlook for liquid crystal displays and rising inventory levels made it more difficult for AU Optronics to sell stock. Shares of AU Optronics traded down 81 cents, or 4.8%, to $15.97.