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What Monetary Assist For Small Companies Is Accessible Throughout The Restoration From Covid?

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Trustee Sues Co-Founders of Ruby's Diner Inc. in Bankruptcy Court

By City News Service
Mar 13, 2021
SANTA ANA (CNS) - The trustee overseeing Ruby s Diner Inc. s Chapter 7 proceedings is suing the chain s co-founders and former officers in Santa Ana, alleging the pair drove the restaurant group into bankruptcy after improperly taking the company s assets and seeking at least $35 million in damages.
The complaint, filed Thursday in federal bankruptcy court by trustee Richard Marshack, alleges the chain s insolvency was caused by Douglas Cavanaugh and Ralph Kosmides due to a series of improper decisions.
An RDI representative could not immediately be reached for comment after regular business hours.
According to the suit, RDI owned and operated the Ruby s Diner restaurant chain, which Cavanaugh and Kosmides started in Newport Beach in 1982 and grew to include over 40 locations. The company declared bankruptcy in 2018 when it owed over $14 million to its creditors, the suit says. ....

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