I put settlement money from my personal injury case into a joint CD, wife took the money and left, can I take action against her

Probably not. The money was put into a "joint" CD. I would presume that a "joint" CD is a CD which was in BOTH of your names. If the account was in BOTH of your names, each named person on the account has access to ALL funds. When two people share a joint account, the funds within that account are the equal property of both individuals.

You may want to look into talking with a family law/divorce attorney if you cannot reconcile.

With a joint account, either party may withdraw funds at any point. With this in mind it is always best to have a joint account with someone that you trust.

Oh the pain!
This is not a personal injury question this is a "family law" question. The answer depends on the dynamics of what else is happening in your marriage and on Illinois law. The previous answer that you received is correct. When you have joint accounts, either individual in the account may withdraw. However, if the context of the case is that there is a divorce pending, depending on the rest of the financial assets that you have, there is a very good argument that half of that money is yours and should be credited to you in the final disposition of the marital estate. Of course, this is subject to the further question of whether it would be an irretrievable breakdown divorce or a "for cause" divorce and that could make a difference in the disposition of the assets.
See a family law practitioner.
The bank is not liable in that the bank did not do anything wrong.