Yes, fails is a Scrabble word!

Verb

1. Fail to do something; leave something undone

2. Be unsuccessful

3. Disappoint, prove undependable to; abandon, forsake

4. Stop operating or functioning

5. Be unable

6. Judge unacceptable

7. Fail to get a passing grade

8. Fall short in what is expected

9. Become bankrupt or insolvent; fail financially and close

10. Prove insufficient

11. Get worse