Holly Hall Academy was ranked as inadequate by officials after it found pupils made 'weak progress' due to ineffective teaching.
Leadership, teaching, pupil behaviour and success rates were all given the bottom rung rating too.
In the report, lead inspector Dan Owen concluded that the 654-pupil school 'requires significant improvement'.
There was also a 'long legacy of underachievement' in English and maths.
Prejudicial and homophobic language was said to be rife, while pupils told inspectors they were so far behind in some subjects that it would be impossible to catch up.
A tweet posted yesterday by Dudley Academies Trust read: "Following publication of the Ofsted report we are holding a consultation event on Wednesday February 14 at 6pm at the Academy, where members of the Trust Board, including the Chair, Lowell Williams and our CEO, Jo Higgins will be in attendance."