Old National Bank Files Lawsuit Accusing Bell Bank of Poaching Employees and Misusing Confidential Information
BRAINERD, Minn. — Old National Bank has initiated legal action against Bell Bank and eight former employees, alleging a coordinated effort to poach staff and misuse confidential information from its Brainerd and Baxter branches. The lawsuit, filed on December 15, 2025, in U.S. District Court for the District of Minnesota, accuses Bell Bank and the former employees of multiple violations, including misappropriation of trade secrets, breach of fiduciary duty, interference with business relationships, and unfair competition.
The suit centers on events that unfolded on December 7 and 8, when six senior banking professionals and two additional employees resigned from Old National Bank and rapidly joined Bell Bank, which currently does not have a physical presence in the Brainerd area. Surveillance footage reportedly captured the departing employees removing several boxes from Old National Bank premises without approval or inspection by the bank’s human resources department.
Old National Bank contends that this mass exit severely disrupted branch operations, necessitating the temporary closure of its Brainerd location and lobby services at its Baxter branch. The bank describes the incident as a “coup d’etat,” highlighting the simultaneous transition of personnel all moving to Bell Bank while actively encouraging Old National Bank’s clients and employees to switch allegiances.
According to the complaint, the former employees held sensitive and proprietary information, including private customer contact details, account information, credit analyses, pricing data, and employee performance metrics. Old National Bank alleges that the ex-employees began leveraging this confidential data—potentially even before departing—to solicit customers and recruit additional personnel to Bell Bank.
“In a period spanning less than 24 hours, Old National Bank suffered a sudden and catastrophic loss of senior personnel from its Brainerd and Baxter branches,” states the lawsuit. “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, headquartered in Fargo, North Dakota, disputed the allegations in a statement given to the Minnesota Star Tribune. The bank emphasized its intent to demonstrate legitimate reasons for the employees’ departures from Old National Bank and confirmed plans to open a branch in the Brainerd-Baxter market.
Old National Bank is seeking a court injunction to prohibit the former employees from using its trade secrets and confidential information at Bell Bank, bar Bell Bank from employing the named ex-employees, and prevent any solicitation of Old National Bank’s customers and personnel. The bank also seeks to stop any destruction or concealment of evidence related to the case and pursue compensatory and punitive damages connected to the alleged unlawful activities.
The lawsuit underscores the operational, reputational, and financial harm sustained by Old National Bank as a consequence of what it describes as Bell Bank’s “coordinated and unlawful scheme.”
Old National Bank operates as a nationally chartered institution headquartered in Evansville, Indiana, and Chicago, with services across the Midwest. It assumed operations of Bremer Bank following a merger completed on May 1, 2025. Bell Bank operates as a North Dakota state-chartered banking corporation with its main offices located in Fargo.
This legal dispute shines a spotlight on the intense competition and challenges faced by regional banks, particularly as Bell Bank looks to expand its footprint into new communities such as Brainerd and Baxter.
Reported by Matt Erickson, Brainerd Dispatch. For ongoing coverage, stay connected with InForum and Forum Communications Company.