I don't know about that SCRUM failure, but the original XP project was a well-documented failure:

https://secure.wikimedia.org/wikipedia/en/wiki/Chrysler_Comp...

One way to explain things is to say that teams like Agile whether it's effective or not (for some definition of effective). Another way to explain this is to say that Agile can't make you succeed, but it's the fastest and cheapest way to fail.

When I'm selling snake-oil, I prefer the latter explanation.