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.