Are ladybugs and their larvae hurt by bacillus thuringiensis?

YES, THEY ARE! Unfortunately Bacillus thuringiensis DOES HARM many beneficial insects in the garden. A scientific study to look at the higher Death Rate, reduced growth and reduced appetite of a number of beneficial species including Ladybugs, Jewel wasps, and Dragonfly nymphs was conducted in 2007. (Praying mantids were to be studied in a follow up research effort.) Effects of Bioinsecticides on Beneficial Insects: What Will be the Outcome of Land and Aquatic Bioaccumulation? Presented to Missouri Junior Academy of Science By David Joel Freeman April, 2007. So in your home or larger scale garden consider the harm that one 'good bacterial toxin' can do to other 'good insects' when they are used together.