I can't confirm/deny there was an update because many sites I'm responsible for weren't hit.
I can confirm however, that if you were using Algo Ranks you're probably not happy you did right about now. The sites that did are receiving a very extreme penalty right now, paramount to the extreme penalties issued to users of BMR back when that hit.
I'm assuming you're going to be in the same boat if you were using backlinks.com.
These are the risks of buying links and/or using public blog networks directly to your money site. Isolate yourself by pumping up a quality tier1 instead of directly to your money site if you're planning on using public blog networks and your website is important ... either that or realize your site is expendable and be happy for the cash you make while you're gambling.