HELP!!! What happen to my friend's Canon S500?

The S500 was purchased in 2004 and has worked fine until recently. The camera has not been dropped. The 2/3 of the LCD on the back has turned pale purple. Also the pictures come out having a purple band on one side (see below). I wonder if this can be fixed? If it would cost too much, it might be better to get a new one?

Thanks for your help and input!

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Check out this sticky on a service notice, which affects the S500 among other models.