However, the move quickly reversed after the hoax was exposed. Near 1615 GMT, the exchange rate had retreated to around $179.
A spokesman for Walmart confirmed to AFP that the information was false.
A statement on GlobalNewswire posted at 1518 GMT advised readers to "disregard the news release 'Walmart announces major partnership with Litecoin."
Litecoin's Twitter handle retweeted a statement from the Litecoin Foundation saying, "The Litecoin Foundation has not entered into a partnership with Walmart."
GlobalNewswire did not immediately respond to a request for comment.
The site is a rival to Business Wire and PR Newswire, which are well known venues for disseminating company news.