Bank sues rival over alleged employee poaching

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Old National Bank has filed a lawsuit in Minnesota federal court accusing Bell Bank and eight former Old National employees of orchestrating a coordinated mass resignation that shut down two Minnesota branches and disrupted operations. The suit also claims that the former employees took confidential information and customer relationships to Bell Bank.

Old National alleges that Bell Bank and eight former Old National Bank employees orchestrated a deliberate and unlawful scheme to execute a coordinated mass resignation from two Old National branches, in Brainerd and Baxter. According to the complaint, the resignations were meticulously planned over weeks or months while the employees were still employed at Old National.

The complaint states that the former Old National employees simultaneously resigned on the morning of Dec. 8, 2025. According to the plaintiff, Old National was forced to shutter the Brainerd branch and temporarily suspend operations at the Baxter branch.

Old National says that there is evidence that the departures were deliberate and coordinated. They cite resignation letters which, according to the complaint, have identical typographical errors. The suit also asserts that there were internal communications about leaving “our” badges and corporate credit cards in “our” desks, which they claim is “proof positive” that this was a coordinated effort. Old National also claims that video surveillance from both branches shows the former employees removing boxes of documents and materials in multiple trips prior to the start of business hours.

Within hours of the resignations, Old National asserts, Bell Bank had positioned the former employees in roles serving the same customers they previously handled at Old National. The suit claims that clients were immediately solicited to move their business to Bell Bank.

Old National claims that Bell Bank undertook these actions to get a foothold in the Brainerd/Baxter market, which they assert took decades of effort for Bremer Bank, Old National’s predecessor-in-interest, to develop. By “poaching an entire branch of senior bank personnel,” plaintiffs say, “Bell Bank would obtain the immediate benefit of hiring a knowledgeable and well-trained staff.”

After the resignations, Old National claims that it sent cease-and-desist letters to each former employee, asking them to return any confidential information, to not disclose Old National Bank information at their new employer, and to not solicit Old National’s employees or customers. However, Old National asserts that the employees refused to provide assurances.

The federal lawsuit alleges that the defendants’ actions, which they characterize as a “coup d’etat,” violate multiple federal and state trade secret laws, unfair competition statutes, and breach fiduciary and confidentiality duties. Additionally, Old National maintains that defendants engaged in tortious interference, civil conspiracy, aiding and abetting, and unjust enrichment. Old National seeks injunctive relief, damages, and other remedies.

In a statement sent to Minnesota Lawyer, Bell Bank said, “Bell Bank disputes any allegations of wrongdoing and looks forward to demonstrating why these employees left Old National Bank and joined Bell Bank. We are excited to have these new team members on board, and we look forward to serving and working with the communities of Brainerd and Baxter.”