So it sounds like you have been labeled as an Affiliate. Therefore you are caught in the net with the others.
That does suck if it took down your legit biz.
It is amazing this aff. business plan lasted so long. But it had to come to an end soooner or later.
I will tell you how frustrating it is from my standpoint. I will be selling and shipping a product and have a few legit competitors. Then one of the competitors signs up with an Aff. program. Suddenly dozens of websites are competing with me and driving up our adwords costs. Reducing the profits for me and our legit competitor. Its very frustrating. Every once and a while, google will kill off one of the useless Affs. and before you know it, they are back with another throw away domain. For some keywords I have seen dozens of aff. domains come and go.