Aug 29 (Reuters) - General Motors ( GM ) was ordered by

a federal appeals court to face a class action claiming it

violated laws of 26 U.S. states by knowingly selling several

hundred thousand cars, trucks and SUVs with faulty

transmissions.

The 6th U.S. Circuit Court of Appeals said a lower court

judge had discretion to let drivers sue in groups over Cadillac,

Chevrolet and GMC vehicles equipped with 8L45 or 8L90

eight-speed automatic transmissions, and sold in the 2015

through 2019 model years.

Drivers said the vehicles shudder and shake in higher gears,

and hesitate and lurch in lower gears, even after repair

attempts. They also accused GM of telling dealers to provide

assurance that harsh shifts were "normal."

GM did not immediately respond on Thursday to requests for

comment. The decision was issued on Wednesday by a three-judge

panel of the Cincinnati-based appeals court.

Class actions can result in greater recoveries at lower cost

than if plaintiffs were forced to sue individually.

The GM litigation covers about 800,000 vehicles, including

514,000 in the certified classes.

Vehicles include the Cadillac CTS, CT6 and Escalade;

Chevrolet Camaro, Colorado, Corvette and Silverado; and GMC

Canyon, Sierra and Yukon, among others.

In opposing class certification, GM said most class members

never experienced problems and therefore lacked standing to sue.

It also said there were too many differences among class

members to justify group lawsuits.

Circuit Judge Karen Nelson Moore, however, said overpaying

for allegedly defective vehicles was enough to establish

standing.

She also said "exactly how, and to what extent, each of the

individual plaintiffs experienced a shudder or shift quality

issue is irrelevant" to whether GM concealed known defects, and

whether drivers would have found that information material.

The court also rejected GM's argument that many potential

claims belonged in arbitration.

It returned the case to U.S. District Judge David Lawson in

Detroit, who certified the classes in March 2023.

"We look forward to holding GM accountable before a Michigan

jury," Ted Leopold, a Cohen Milstein Sellers & Toll partner

representing the drivers, said in a statement.

The case is Speerly et al v. General Motors LLC, 6th U.S.

Circuit Court of Appeals, No. 23-1940.