BRAINERD — Old National Bank is suing Bell Bank and eight former Old National Bank employees in Brainerd and Baxter for allegedly poaching employees and confidential information.
The 11-count lawsuit, filed Dec. 15 in U.S. District Court-District of Minnesota, claims Bell Bank, which currently does not have a location in the Brainerd area, and its former employees are in violation of federal and state law by misappropriating trade secrets, breaching duty of confidentiality, breaching fiduciary duty, aiding and abetting breach of fiduciary duty, committing civil conspiracy, interfering with existing business relationships, interfering with prospective business transactions, interfering with employment relationships, causing unfair competition and creating unjust enrichment.
On Dec. 7 and Dec. 8 six senior banking professionals and two other employees resigned from their positions at Old National Bank and almost immediately took positions with Bell Bank. Video surveillance showed the former employees removing several boxes from Old National Bank without opportunity for inspection by the bank’s human resources department.
Old National Bank contends the coordinated resignations left the Brainerd branch without sufficient staff to operate, and an impromptu “closed” sign was blacked on the entrance door. In the Baxter branch, bank operations in the lobby were also closed.
In its lawsuit, Old National Bank described the effort as a “coup d’etat” as the former employees all took positions with Bell Bank and were working to get Old National Bank clients and employees to switch to Bell Bank.
Old National Bank claims the former employees had access to and intimate knowledge of the bank’s most sensitive information including nonpublic customer contact details, account data, credit analyses, pricing information, and employee performance metrics. Shortly after — and potentially before — their departure, the former employees began misusing the confidential, trade secret information for the solicitation of Old National Bank customers and for the recruitment of other Old National Bank personnel, according to the lawsuit.
“In a period of time spanning less than 24 hours, (Old National Bank) suffered a sudden and catastrophic loss of senior personnel from its Brainerd and Baxter branches,” the lawsuit stated. “The departures were not isolated or coincidental; they were the result of a coordinated, preplanned scheme carried out by Bell Bank and the eight Former Employees.”
Bell Bank, in a statement to the Minnesota Star Tribune, said it “disputes any allegations of wrongdoing and looks forward to demonstrating why these employees left Old National Bank and joined Bell Bank.” Bell Bank also confirmed it intends to open a branch in the Brainerd-Baxter community.
Old National Bank is seeking a judgment stopping its former employees from using Old National Bank trade secrets, or confidential and proprietary information at Bell Bank; prohibiting Bell Bank from employing Old National Bank employees named in the lawsuit; prohibiting the former employees from encouraging other employees to quit Old National Bank; soliciting Old National Bank customers using any Old National Bank information; stopping Bell Bank and the former employees from destroying, concealing or altering any evidence related to Old National Bank’s claims; and various other compensatory and punitive damages as determined by law or at trial.
“Defendants have caused significant operational disruption, reputational harm, and economic loss to (Old National Bank) — harm which is ongoing. This lawsuit seeks to stop that conduct, protect (Old National Bank’s) confidential information and workforce, and recover damages caused by Defendants’ coordinated and unlawful scheme.”
Old National Bank is a nationally-chartered bank headquartered in Evansville, Indiana, and Chicago. It operates bank branches and provides commercial, retail and investment banking services throughout the Midwest, including Minnesota. It is the successor-by-merger to Bremer Bank as of May 1, 2025.
Bell Bank is a North Dakota state-chartered banking corporation with its corporate headquarters located in Fargo, North Dakota.
Matt Erickson joined the Brainerd Dispatch in 2000 as a reporter, covering crime and courts and the city of Brainerd. In 2012 he was promoted to night editor and in 2014 was promoted to editor of the newspaper.