As kids grow & change, the support they need from their IEP might need to change too. Since the current IEP is preventing him from passing his classes, it makes sense to request an IEP meeting to tweak the support he gets so he can pass his classes. And hold the principal accountable. If they said they'd follow up on things, send an email and ask what they think needs to be done to help. What's going on with the lack of focus? Is it the material where it's too hard (or too easy)? If it's too hard, he might need to be pre taught so it is easier. It the zoning out an absent seizure where he's got a medical issue going on? If they touch his shoulder (and I know that teachers don't generally put hands on students - my suggestion is a touch to redirect) does he respond?
I'd say it's not OK for ANY student to be failing several classes. Something different needs to be done. It could be simply implementing the current IEP to what it says to do or he could need more than what the IEP says to do. The squeaky wheel get the grease. Squeak to get your child what they need. With sports, it's the state HS sport association that requires passing grades so it cannot be accommodated through the IEP process. The school needs to help him so he can continue to do sports.