In a notable legal battle unfolding in the Brainerd area, Old National Bank has filed a lawsuit against Bell Bank and eight former employees who recently transitioned from Old National to Bell Bank. The lawsuit, lodged in U.S. District Court for the District of Minnesota, contains 11 counts and alleges serious infractions including the misappropriation of trade secrets and breaches of confidentiality.
The legal action stems from a series of resignations that took place on December 7 and 8, when six senior banking professionals and two additional employees left their positions at Old National Bank to join Bell Bank. The lawsuit contends that the departures were part of a coordinated effort, characterized by Old National as a “coup d’etat,” intended to destabilize its operations. Surveillance footage reportedly captured the former employees removing boxes containing sensitive material from the Old National premises without oversight from the bank’s human resources department.
Old National Bank asserts that this abrupt exit left its Brainerd branch severely understaffed, forcing it to close temporarily and post a sign indicating operations were halted. Similarly, the bank’s Baxter branch faced disruptions in its lobby due to the sudden departure of personnel.
According to the suit, the former employees possessed access to crucial information, including customer contact details, account data, credit evaluations, pricing strategies, and employee performance metrics. Shortly after their exit, it is alleged that they began using this confidential information to solicit Old National’s clients and recruit other employees for Bell Bank.
The lawsuit argues, “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.” It emphasizes that these resignations were not random but rather part of a premeditated scheme orchestrated by Bell Bank and the former employees.
In response, Bell Bank has publicly disputed the allegations, stating they look forward to clarifying the circumstances that led to the former employees’ decisions to leave Old National Bank. Additionally, Bell Bank plans to establish a branch in the Brainerd-Baxter area, thereby signaling its growth ambitions in the region.
Old National Bank is seeking a court judgment that would prevent the former employees from utilizing its trade secrets and confidential information while employed at Bell Bank. Furthermore, the bank aims to halt Bell Bank from hiring its employees named in the lawsuit and to block the solicitation of Old National customers using proprietary information. The bank is also pursuing damages due to operational disruption and reputational harm.
In its legal filings, Old National Bank expressed that the defendants have caused ongoing operational disruptions and significant economic losses, asserting that the lawsuit aims to protect its confidential information and workforce while rectifying the damages incurred.
Old National Bank, a nationally chartered institution headquartered in Evansville, Indiana, operates across the Midwest, including Minnesota, while Bell Bank is based in Fargo, North Dakota. The outcome of this lawsuit may have far-reaching implications for both banks and their operations in the region.
