One of our client sites lost all of their hard earned ranking in Aug 2012. The best I can describe, the site was hit with a nasty phrama hack.
The hacker literally took over the website unbeknownst to us at the time sabotaged everyone of the site's pages with cloaked phrama RX pages of their own. The hack was so bad and embedded into the fabric of our site that we finally had to re-install WP and rebuild the site from scratch.
To make matters worse, we still have 100s, if not 1000s (not sure since Google does not give us all the links in the GWT) of cloaked pages from foreign 3rd party websites with links pointing to our site. The links are mainly exact match, commercial keyword anchor text links that include: viagra, levitra, propecia and cialis. We have notified Google about all the sites with links pointing to our site here https://www.google.com/safebrowsing/report_badware/?hl=en
, we disavowed all the links at the domain: level using the Google disavow tool and have tried on multiple occasions to reach out by email to the other hacked website owners, who are in the majority of cases, are unconvinced about the issue on their end. I am not sure what to do about this? Do you or does anyone else have any helpful thoughts or words of wisdom?