LG optimus says SD card has been removed?

It could be both, but it sounds like the microSD memory card may have been broken in the drop. If everything else is working fine on the phone, more than likley it's the mem. card. It would be best to invest in another memory card and when inserting make sure the locking tab cover closes and locks completly. As far as retreiving the files on the card in question, if you have one, use a microSD card reader and usb adapter and connect to a PC to see if it will retreive your files. hopefully this helps and will work.