By Frank N. Darras Founding Partner, DarrasLaw | Ranked #1 Nationally for Disability Litigation Last Updated: May 2026
Frank Darras has handled more Principal Financial Group appeals than any attorney in the country. This guide outlines the strategic evidence-gathering required to overturn a Principal denial and secure your future benefits.
You might feel that the appeal process conducted by Principal Financial Group was unfair and designed to prevent any chance of reversing your disability benefit denial. It’s natural to feel frustrated and discouraged, as though you’ve been labeled dishonest and questioning whether pursuing a Principal Financial lawsuit is even worth it. Unfortunately, this reaction is often exactly what insurance companies hope for.
The reality is that laws governing long-term disability claims tend to favor insurers, leading to a high rate of denied appeals being upheld. Principal may rely on your frustration and financial strain to pressure you into abandoning your claim or returning to work prematurely.
However, with a solid legal strategy, it’s possible to successfully challenge their decision and recover the disability benefits you’re entitled to.
When Can a Lawsuit Be Filed for Disability?
The timeline for filing a disability lawsuit against Principal Financial Group depends on whether your claim is governed by the Employee Retirement Income Security Act (ERISA). If your disability coverage was provided as part of an employee benefits plan, it is typically governed by ERISA.
Under ERISA, you cannot file a Principal Financial lawsuit against until you have received a denial of the appeal you submitted to them.
ERISA lawsuits are generally subject to a time limit, which is often either three years from the date of disability or the date of the final denial decision. If Principal Financial Group fails to issue a timely decision on your appeal, you may file a lawsuit without waiting for their decision. However, determining the exact timeline can be complex, as it is influenced by the policy terms and the governing laws of your state.
The statute of limitations, which sets these deadlines, varies by state and is frequently subject to change. Class members affected by Principal’s practices should be particularly mindful of these deadlines to ensure their claims are filed timely.
To avoid potential legal complications or missing critical deadlines, it is usually best to file a lawsuit as soon as reasonably possible. Consulting with a knowledgeable attorney can help ensure your claim is filed within the applicable time frame.
While we take pride in challenging Principal for wrongful disability claim denials, our primary focus is always on achieving the best outcome for our clients. Our goal is to resolve your claim with Principal Financial Group as quickly and efficiently as possible.
After reviewing your disability denial letter, we can promptly assess whether you have a claim we can assist with. We look forward to discussing your options and helping you move forward with your case against Principal Financial Group.
What Are the Most Challenging Issues in a Principal Financial Lawsuit?
The most challenging aspect of any disability lawsuit is that your Principal disability benefit denial is likely governed by ERISA, a federal law that heavily favors insurance companies and applies to most employer-provided disability policies, impacting fiduciary duties.
ERISA was designed to allow insurance companies to provide affordable benefits to employees while limiting their legal expenses in the event of a disability claim denial. However, if your disability policy was not provided through your employer, you won’t need to contend with the limitations imposed by ERISA.
Five Reasons ERISA Disability Laws Favor Principal
- No jury trials are permitted.
- No punitive damages are allowed.
- Discovery is very limited.
- Judges often must apply a standard of review that defers to the insurance company’s decision that you are not disabled.
- Judges can remand the case back to Principal, giving them another opportunity to review and potentially deny the claim again.
- Fiduciaries are expected to seek lower fees, and failure to do so can be argued as a breach of fiduciary duty, making it challenging for plaintiffs to prove their case under ERISA laws.
How Much Does Our Firm Charge to Handle a Principal Financial Group Disability Lawsuit?
Preparing a lawsuit against Principal Financial Group requires significant legal expertise and time, which is why our firm is selective in the types and number of cases we accept. Every attorney at DarrasLaw is committed to delivering the highest level of legal work and personalized attention to your claim.
Unlike high-volume social security firms, we focus exclusively on handling disability insurance claims, including those against Principal Financial Group and Principal Securities, which has faced legal actions regarding allegations of churning and unsuitable investment recommendations.
Collecting Principal Financial Group Disability Benefits Is a Reality
We encourage you to contact any of our disability insurance attorneys to discuss potential strategies for resolving your denial of benefits from Principal Financial Group.
Unfortunately, many people abandon their fight after a claim denial because they don’t want to deal with the challenges posed by Principal. At DarrasLaw, we simplify the lawsuit process, requiring minimal time and effort from claimants, so they can focus on their health and well-being.
Our disability lawyers are available for a free phone consultation to discuss your Principal Financial Group disability claim denial and explore the best path forward for your case.
What Are the Top Reasons for Principal Disability Denials?
- Principal Financial Group denied the claim due to a lack of objective medical evidence.
- An in-house doctor at Principal rejected the disability claim.
- A third-party medical review, conducted without an examination, resulted in a denial of the claim.
- Despite documented functional limitations, Principal denied the claim, stating the claimant could perform a sedentary occupation.
- After a compulsory medical examination, a doctor hired by Principal concluded the claimant was not disabled.
De Novo vs. Abuse of Discretion: The Battleground of Your Lawsuit
When you sue Principal Financial Group under ERISA, the most critical factor is the “Standard of Review” the judge uses to evaluate your case.
- De Novo Review: This is the “gold standard” for policyholders. The judge looks at your case with fresh eyes, giving no weight to Principal’s previous denial.
- Abuse of Discretion: This is much harder to win. The judge will only overturn Principal’s decision if it was “arbitrary and capricious”—essentially meaning it was completely unreasonable.
At DarrasLaw, our first priority in litigation is arguing for a De Novo standard. We scour your policy for “discretionary clauses” that may be prohibited under your state’s law, potentially shifting the power back into your hands.
State Law & Bad Faith: Taking Principal to Trial
If you bought your Principal policy privately (not through an employer), you are not limited by ERISA’s restrictive rules. You have the right to a jury trial and the ability to sue for Insurance Bad Faith.
In a bad-faith lawsuit against Principal, we can seek:
- Consequential Damages: Compensation for the financial ruin caused by the denial (e.g., loss of a home or business).
- Emotional Distress: Compensation for the mental anguish of being wrongfully denied during a health crisis.
- Punitive Damages: Large financial penalties meant to punish Principal for egregious behavior.
What We Look for During Discovery
During a lawsuit, we gain access to Principal’s internal documents. We look for evidence that their denial was motivated by profit rather than your health, such as:
- Reviewer Quotas: Evidence that Principal’s in-house doctors are pressured to deny a certain percentage of claims.
- Financial Incentives: Bonuses paid to claims adjusters for “closing” files (terminating benefits).
- History of Bias: Documentation showing that the “independent” doctors Principal hired have a 90%+ track record of finding claimants “fit for work.”
Meet Our Disability Attorneys
Frank N. Darras, Founding Partner
Experience: For more than 30 years, Frank N. Darras has focused exclusively on long-term disability and insurance litigation, including high-stakes disputes against Unum.
Track Record: He and his firm have recovered nearly $1 billion in wrongfully delayed and denied insurance benefits for policyholders nationwide.
Recognition: Named to Lawdragon’s Top 500 Lawyers in America for 18 consecutive years and listed in Best Lawyers in America since 2006, Mr. Darras is widely regarded as a leading authority on ERISA and disability insurance law.
Susan B. Grabarsky, Senior Trial Attorney
Experience: Ms. Grabarsky represents both individual policyholders and employee groups in complex disability disputes. Her prior experience as an insurance cost-containment analyst provides unique insight into how carriers like Unum evaluate and deny claims.
Approach: She leverages her understanding of insurer review tactics to strategically challenge denials and push for full payment of valid benefits.
Reputation: Known for meticulous preparation and assertive advocacy, she has built a strong record confronting unfair disability practices.
Heather Gardner, Senior Associate
Experience: Heather Gardner concentrates on ERISA-governed and individual disability appeals involving Unum and other national carriers.
Role in Litigation: Working closely with Frank Darras, she helps develop comprehensive administrative records and appellate strategies designed to withstand federal court scrutiny.
Professional Strength: She is respected for her precision in analyzing policy language and dismantling complex denial rationales.
Phillip S. Bather, Associate Attorney
Experience: Phillip S. Bather focuses on ERISA litigation and insurance bad-faith disputes, assisting clients through intake, claim development, and administrative appeals.
Case Strategy: He works to assemble compelling evidentiary records aimed at reversing unjust denials and positioning cases for successful litigation when necessary.
Client Commitment: Recognized for his responsiveness and detail-oriented advocacy, he supports claimants facing aggressive insurer resistance.
Trusted Legal Credentials
- AV Preeminent® Rating – Martindale-Hubbell
- Best Lawyers in America – Disability Law
- Lawdragon 500 Leading Plaintiff Lawyers
These distinctions reflect decades of focused experience, ethical representation, and consistent results in complex disability insurance litigation.
Choose DarrasLaw to Help You With Your Principal Financial Lawsuit
If your disability claim has been denied by Principal Financial Group, it’s essential to understand that you are not alone—and you are not without options. We know how to counteract their strategies and build a strong case on your behalf. Whether your denial was based on a shift from “own occupation” to “any occupation,” a restrictive mental health provision, or any other reason, we can help you understand your rights and develop a strategy to fight back.
Frequently Asked Questions (FAQs)
How long does a lawsuit against Principal Financial Group take?
On average, a federal ERISA lawsuit can take 12 to 24 months from filing to a judge's decision. However, many cases settle in mediation before reaching a final judgment.
Will I have to testify in court against Principal?
In an ERISA case, there is usually no trial and no testimony. The judge makes a decision based entirely on the written "Administrative Record." If you have an Individual Policy, however, you may have a jury trial where you will testify about your condition and the impact of the denial.
Where will my lawsuit against Principal be filed?
ERISA cases are filed in Federal District Court. Individual policy lawsuits are typically filed in State Court, though Principal may attempt to "remove" the case to federal court to gain a home-court advantage.
What is the "Statute of Limitations" for suing Principal?
This varies by state and by the language in your specific policy. Some Principal policies attempt to shorten the time limit to as little as one or three years. Missing this deadline is a permanent bar to recovery.
Can a judge award me more than just my monthly benefits?
Under ERISA, no. You are only entitled to the benefits owed, interest, and potentially attorney’s fees. In an Individual (Bad Faith) case, you can be awarded significantly more, including punitive damages.
Does Principal settle disability lawsuits?
Yes. Principal often prefers to settle cases in mediation rather than risk a published court ruling that could set a negative precedent for their future claims.
What happens if I win my lawsuit?
If the judge rules in your favor, they will typically order Principal to pay all past-due benefits (with interest) and reinstate your monthly payments. In some cases, the judge may "remand" the case, sending it back to Principal to "do it right" the second time.
Why is the "Administrative Record" so important in my lawsuit?
In an ERISA lawsuit, the judge is generally "locked in" to the evidence that was in Principal’s hands at the time of the final denial. If you didn't include a crucial MRI or expert report in your appeal, the judge may never see it.
What are the costs of a lawsuit against Principal?
At DarrasLaw, we handle these cases on a contingency fee basis. We advance all the costs of litigation—including filing fees, expert witnesses, and court reporters. You pay us nothing unless we successfully recover money for you.
Disclaimer: Case results, outcomes, and testimonials are not guarantees of future success. Every claim is unique. This page is for informational purposes only and does not constitute legal advice. For advice specific to your circumstances, contact one of our attorneys directly.
